Bitcoin edged lower during Asian trading on Tuesday, underperforming equity markets as traders remained cautious ahead of a key U.S. inflation report and amid rising global geopolitical tensions. The uncertainty dampened appetite for riskier assets, including cryptocurrencies.
The world’s largest digital asset slipped 0.2% to $91,894.6 by 00:33 ET (05:33 GMT).
Bitcoin has found it difficult to regain momentum since late 2025, with sentiment across crypto markets cooling noticeably into early 2026. Investor focus has increasingly shifted toward artificial intelligence and technology stocks, drawing capital away from digital assets.
CPI data and Fed uncertainty weigh on sentiment
Market attention was firmly on the upcoming U.S. Consumer Price Index (CPI) report for December, due later on Tuesday. Headline inflation is expected to hold steady at an annual rate of 2.7%, while core inflation is forecast to edge slightly higher.
Any indication that inflation remains sticky could reduce the likelihood of near-term interest rate cuts by the Federal Reserve, adding further pressure to risk assets.
Uncertainty surrounding the Fed also persisted after Chair Jerome Powell revealed earlier in the week that he had received threats of legal action from the U.S. Department of Justice. While the issue was officially linked to renovations at the Fed’s headquarters, Powell said he believed the move was intended to pressure the central bank into lowering interest rates.
His remarks reignited concerns over the Fed’s independence, particularly as Donald Trump prepares to name a successor to Powell. Trump has repeatedly criticized the Fed and publicly pushed for aggressive rate cuts.
Altcoins retreat as geopolitics drive risk aversion
Broader cryptocurrency prices also moved lower alongside Bitcoin, as geopolitical tensions further weighed on market sentiment. Escalating unrest in Iran, along with fears of possible U.S. intervention, unsettled global markets and helped push oil prices higher. In Asia, diplomatic frictions between China and Japan showed little sign of easing.
These developments encouraged investors to seek safety in assets such as gold, while technology stocks attracted inflows on continued optimism around artificial intelligence. Strong AI-driven returns in 2025 have weakened crypto’s historical tendency to track tech stocks.
Among major altcoins, Ether fell 0.7% to $3,136.69. XRP declined 0.7%, while BNB edged up 0.2%. Solana dropped 2.1%, and Cardano slipped 1.4%. In the meme coin space, Dogecoin fell 1.3%, while the $TRUMP token lost 1.5%.
