Bitcoin slipped back toward the $87,000 level on Tuesday after failing once again to hold gains above $90,000 in the previous session. Thin year-end trading conditions and weakening institutional demand continued to pressure the world’s largest cryptocurrency.
Bitcoin was last trading about 2.5% lower at $87,458 in early trading. Although prices briefly moved above the closely watched $90,000 threshold on Monday, the rally quickly faded, highlighting strong technical resistance around that level.
ETF outflows weigh as Fed minutes loom
Bitcoin has struggled to gain traction in recent sessions, with repeated pullbacks pointing to fading conviction among traders as the year draws to a close. A key factor weighing on sentiment has been sustained outflows from U.S.-listed spot Bitcoin exchange-traded funds.
The slowdown in institutional demand, reflected in ongoing ETF redemptions, has reversed the inflows that helped drive Bitcoin to record highs earlier this year. This shift has coincided with profit-taking and a broader cooling in risk appetite across markets.
Holiday-thinned liquidity has further dampened trading activity, increasing short-term volatility while limiting follow-through. Despite occasional intraday spikes, Bitcoin has remained largely range-bound below $90,000.
Investors are also exercising caution ahead of the release of minutes from the Federal Reserve’s December policy meeting. The minutes are expected to reveal differing views among policymakers on the future path of interest rates following a rate cut earlier this month.
Expectations for further rate cuts in 2026 have been a supportive factor for risk assets, including cryptocurrencies, as lower interest rates tend to favor speculative investments. However, uncertainty over the timing and scale of additional easing has kept near-term sentiment restrained.
Altcoins slide alongside Bitcoin
Most major altcoins moved lower on Tuesday, tracking Bitcoin’s losses amid the cautious market mood. Ethereum fell around 3% to $2,949, while XRP declined 1.6% to $1.86.
Solana dropped roughly 3%, Cardano slid 6.5%, and Polygon retreated more than 4%. Meme tokens also weakened, with Dogecoin and the $TRUMP token both down nearly 3%.
Overall, the crypto market remains under pressure as traders balance year-end liquidity constraints, ETF flow trends, and uncertainty surrounding future U.S. monetary policy.
