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Bitcoin fell on Tuesday, snapping a short-lived rebound as investors stayed defensive toward cryptocurrencies ahead of key U.S. economic releases that could reshape expectations for Federal Reserve policy in 2026.
The world’s largest cryptocurrency slid 1.1% to $87,815.3 by 00:57 ET (05:57 GMT), after briefly climbing back toward the $90,000 level earlier in the week. The broader crypto complex also eased, though losses were restrained by thin holiday liquidity, which can mute follow-through and distort intraday moves.
Recovery Stalls With GDP and PCE Inflation in Focus
Market participants pointed to caution ahead of two important U.S. data points due later Tuesday:
- Third-quarter GDP is expected to show growth cooled slightly versus the prior quarter, reflecting softer retail activity and a moderating labor market.
- October PCE inflation—the Fed’s preferred inflation gauge—will be closely watched for signs that disinflation is resuming.
In theory, evidence of easing inflation and slower growth would strengthen the case for additional rate cuts next year, a backdrop that can support risk assets, including crypto. But analysts noted a key complication: readings for October and November may have been distorted by a prolonged government shutdown, meaning investors may place more weight on December and fourth-quarter data for a cleaner signal on underlying momentum.
Strategy (MSTR) Raises Cash, Halts Bitcoin Purchases
Adding to the cautious tone, Michael Saylor’s Strategy Inc., the largest corporate holder of Bitcoin, has paused purchases in recent weeks while boosting liquidity.
In a regulatory filing, the company said it raised $748 million in the week to December 21 and bought no Bitcoin. Earlier in December, it purchased around $2 billion worth of Bitcoin, lifting its total holdings to 671,268 BTC.
Strategy’s shares have been under pressure amid growing skepticism around the long-term sustainability of the firm’s Bitcoin-heavy capital structure. The company has taken steps to strengthen buffers—including the creation of a $1.4 billion reserve earlier in December for future dividend and interest obligations—after concerns rose that a prolonged downturn in Bitcoin could force asset sales to meet funding commitments.
Strategy’s stock has roughly halved in 2025, with additional weakness attributed to its omission from a key MSCI index, according to market chatter.
Altcoins Track Lower as Risk Appetite Fades
Major altcoins largely followed Bitcoin lower:
- Ethereum fell 1.8% to $2,970.31
- BNB slipped 1.0% to $850.50
- XRP lost 1.8% to $1.8829
- Solana and Cardano dipped 0.8% and 0.2%, respectively
- Meme tokens DOGE fell 0.5%, while $TRUMP dropped 2.1%
With liquidity thinning into year-end, crypto traders are likely to remain headline- and data-dependent, with any surprise in U.S. growth or inflation potentially triggering exaggerated moves in either direction.
