Bitcoin traded in a narrow range on Tuesday, as activity across cryptocurrency markets remained subdued due to public holidays in several major financial hubs. Thin liquidity limited price action, while investors stayed cautious ahead of important U.S. economic data releases and renewed diplomatic discussions between the United States and Iran.
By 00:39 ET (05:39 GMT), Bitcoin was down 0.5% at $68,056, reflecting a largely directionless session.
Bitcoin continues to feel pressure after months-long crypto decline
Last week, Bitcoin briefly approached the $60,000 level, extending what has become a prolonged correction across the broader crypto market. Since reaching a record high in October, the world’s largest cryptocurrency has lost nearly 50% of its value amid persistent macroeconomic headwinds.
Recent weakness intensified after markets began reassessing the outlook for U.S. monetary policy. Investors reacted cautiously to the nomination of Kevin Warsh by President Donald Trump for the role of Federal Reserve Chair. Warsh is widely viewed as less dovish, raising concerns that U.S. monetary conditions could remain tighter than previously anticipated. Such an environment typically weighs on risk-sensitive assets, including cryptocurrencies.
Attention is now turning to a series of key U.S. economic indicators scheduled for release in the coming days. These include industrial production data, trade figures, and the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation. The minutes from the Fed’s January meeting are also due this week and could provide further clarity on future interest rate policy.
Heightened risk aversion has additionally supported demand for traditional safe-haven assets such as gold and precious metals. At the same time, volatility in U.S. technology stocks, which often move in tandem with crypto markets, has added further pressure to digital assets.
Bitcoin found limited support from corporate holder Strategy Inc (NASDAQ: MSTR), which stated it was financially positioned to withstand a potential Bitcoin price drop to $8,000. However, the company reported significant fourth-quarter losses, and recent declines in Bitcoin have renewed scrutiny over its debt exposure, particularly liabilities linked to its crypto holdings.
Strategy is not alone. Japan-based Metaplanet Inc (TYO:3350), which has adopted a Bitcoin treasury strategy, disclosed a valuation loss of approximately 102.2 billion yen on its holdings in recent weeks.
Altcoins post modest recovery
While Bitcoin remained under pressure, several major altcoins posted mild gains on Tuesday. Ether rose 0.9% to $1,976, and XRP advanced 1.4% to $1.4758.
Other large-cap tokens, including BNB, Solana, and Cardano, gained between 1.7% and 3%, showing tentative signs of stabilization after recent sell-offs.
Memecoins underperformed the broader market. Dogecoin fell 2.2%, while the $TRUMP token declined 3.7%, reflecting continued volatility in speculative segments of the crypto space.
