Bitcoin dipped on Tuesday, cutting short a recent rebound as traders remained largely cautious towards cryptocurrencies, with anticipation of key U.S. economic readings adding to the risk-averse mood, APA reports, citing Investing.com.
Bitcoin slid 2.6% to $87,655.0 by 08:42 ET (13:42 GMT). The world’s largest crypto had recovered as far as $90,000 this week, before pulling back on Tuesday.
Broader crypto prices also pulled back from a short-lived recovery, although overall losses were limited by thin trading volumes, on account of the year-end holidays.
Bitcoin recovery stalls with US data on tap
Bitcoin’s recent recovery was in part hampered by caution before key U.S. economic prints due later on Tuesday.
Third-quarter gross domestic product data is expected to show growth slowed slightly from the prior quarter, especially as retail spending dithered and the labor market cooled.
Also on tap is personal consumption expenditures index data for October, which is the Federal Reserve’s preferred inflation gauge.
Any signs of further cooling in the U.S. economy, especially in inflation, are likely to open the door to more interest rate cuts by the Fed.
But analysts warned that economic prints for December and the fourth quarter will likely provide more insight into the U.S. economy, given that readings for October and November are likely to have been disrupted by a prolonged government shutdown.
Strategy pauses Bitcoin buying, raises cash reserves
Michael Saylor’s Strategy Inc (NASDAQ:MSTR), the world’s largest corporate Bitcoin holder, paused purchases of the crypto in recent weeks and increased its cash reserves, appearing to prepare for a chill in crypto prices.
Strategy said in a filing that it raised $748 million in the week to December 21, and purchased no Bitcoin. The company had earlier in December purchased about $2 billion in Bitcoin, bringing its total stockpile to 671,268 Bitcoin.
The company’s shares have fallen in recent months, amid increasing concerns over the long-term viability of its Bitcoin strategy.
Earlier in December, Strategy was seen creating a $1.4 billion reserve for future dividend and interest payments for its numerous capital obligations, as an extended decline in Bitcoin prices raised concerns that the company may be forced to sell some of its holdings to meet its obligations.
Strategy’s main shares roughly halved in value in 2025, with the company’s recent snubbing from being added to a key MSCI index also adding to pressure on the stock.
Crypto price today: altcoins fall tracking Bitcoin
Broader crypto prices stemmed their recent recovery and fell tracking Bitcoin.
World no.2 crypto Ether fell 3.7% to $2,941.48. BNB lost 1.7% to $848.51 while XRP fell 2.2% to $1.88.
Solana and Cardano shed 2.5% and 2.9%, respectively. Among meme coins, DOGE slid 2.3% and $TRUMP slipped 1.3%.
Read more on Azeri – Press Informasiya Agentliyi
