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Bitcoin edged lower in Asian trading on Tuesday, underperforming equity markets as investors remained cautious ahead of key U.S. inflation data and amid rising geopolitical tensions across several regions.
The world’s largest cryptocurrency slipped 0.2% to $91,894 by 00:33 ET, extending a period of subdued performance that has characterized late 2025 and early 2026. While global equities have found renewed momentum, particularly in technology and artificial intelligence-linked stocks, crypto markets have struggled to regain traction as capital continues to rotate toward traditional risk assets.
Focus in markets is firmly on the release of U.S. consumer price index data for December. Headline inflation is expected to hold steady at 2.7% year on year, while core CPI is forecast to edge slightly higher. Any signs of persistent price pressures could reduce the Federal Reserve’s room to cut interest rates in the months ahead, a scenario that typically weighs on speculative assets such as cryptocurrencies.
Uncertainty surrounding the Federal Reserve has also unsettled sentiment. Chair Jerome Powell revealed earlier this week that he had received threats of legal action from the Department of Justice, officially linked to a renovation project at the Fed’s headquarters. Powell suggested the move was politically motivated, aimed at pressuring the central bank to comply with demands from President Donald Trump for aggressive rate cuts. The episode has raised fresh concerns about the Fed’s independence, particularly as Trump prepares to name Powell’s successor.
Broader crypto markets mirrored Bitcoin’s weakness. Ether fell 0.7% to $3,137, while XRP also slipped 0.7%. Solana dropped 2.1% and Cardano declined 1.4%, even as BNB managed a modest 0.2% gain. Among meme tokens, Dogecoin lost 1.3% and $TRUMP shed 1.5%.
Geopolitical tensions have added another layer of caution. Escalating unrest in Iran, coupled with fears of potential U.S. intervention, has rattled markets and pushed oil prices higher. In Asia, a diplomatic standoff between China and Japan remains unresolved. These developments have driven investors toward traditional safe havens such as gold, while technology shares continue to benefit from sustained optimism around artificial intelligence.
The divergence underscores a broader shift in market dynamics. In 2025, AI-linked equities significantly outperformed cryptocurrencies, weakening the long-standing tendency for Bitcoin to track tech stocks. With few directly positive catalysts for digital assets, crypto markets remain rangebound, waiting for clearer signals on monetary policy and global risk conditions.
