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Bitcoin retreated toward the $87,000 level on Tuesday after another unsuccessful attempt to sustain a rebound above $90,000 in the previous session, with thin year-end trading volumes and weakening institutional demand weighing on the world’s largest cryptocurrency.
By 01:32 ET (06:32 GMT), Bitcoin was trading 2.5% lower at $87,458.6. The token briefly broke above the closely watched $90,000 threshold on Monday but quickly surrendered those gains, reinforcing signs of strong technical resistance around that level.
ETF outflows drag Bitcoin; Fed minutes in focus
The cryptocurrency has struggled to generate sustained momentum in recent sessions, with repeated pullbacks underscoring a lack of conviction among traders heading into the year’s end.
Persistent outflows from U.S.-listed spot Bitcoin exchange-traded funds have been a key headwind. The reversal in institutional flows — after earlier inflows helped drive Bitcoin to record highs — has weighed on sentiment, coinciding with profit-taking and a broader cooling in risk appetite.
Holiday-thinned liquidity has further distorted trading conditions, amplifying price swings while limiting follow-through. Despite brief intraday moves above $90,000, Bitcoin has largely remained range-bound below that level.
Investors were also cautious ahead of the release of minutes from the Federal Reserve’s December policy meeting later on Tuesday. The minutes are expected to shed light on divisions among policymakers over the path of interest rates after the central bank’s recent cut.
Expectations of additional rate reductions in 2026 have supported risk assets, including cryptocurrencies, by lowering the relative appeal of yield-bearing investments. However, uncertainty over the timing and scale of future easing has kept sentiment cautious in the near term.
Altcoins fall alongside Bitcoin
Most major altcoins declined on Tuesday, mirroring Bitcoin’s weakness in a subdued trading environment.
Ethereum slipped 3% to $2,949.92, while XRP fell 1.6% to $1.86. Solana lost 3%, Cardano dropped 6.5%, and Polygon retreated more than 4%.
Among meme tokens, both Dogecoin and $TRUMP fell nearly 3%, as broader crypto markets tracked Bitcoin’s losses.
