Bitcoin fell on Tuesday, extending a recent downturn as risk appetite, especially for speculative crypto assets, remained frail in anticipation of several key U.S. economic readings.
Crypto prices largely tracked an extended downturn in global technology stocks, as questions over artificial intelligence saw markets lock in recent profits in the sector. Losses in tech also dulled appetite for crypto and other risk-heavy assets.
Bitcoin fell 4% to $85,987.9 by 00:35 ET (05:35 GMT), and was near its weakest level in two weeks. The crypto also remained close to a seven-month low hit in late-November.
Bitcoin on backfoot as sentiment sours ahead of payrolls data Bitcoin steadily lost ground over the past week, taking little support from the Federal Reserve cutting interest rates and presenting a dovish outlook for monetary policy.
Risk appetite remained frail as traders awaited data that is likely to factor into the Fed’s plans. Nonfarm payrolls data for November is due later on Tuesday, followed by consumer price index inflation data on Thursday.
The labor market and inflation are the Fed’s two biggest considerations for altering policy, with any signs of weaker payrolls and softer inflation likely to drive expectations for lower interest rates.
Such a scenario could help Bitcoin recoup some lost ground, given that lower rates boost the appeal of speculative assets such as crypto. The Fed also began buying back short-dated Treasuries over the past week, increasing market liquidity and potentially opening the door for more plays into speculative assets like crypto. Ultra-low interest rates and the Fed’s liquidity measures– called quantitative easing by some– were key drivers of crypto’s 2021 bull run.
Crypto price today: altcoins track Bitcoin losses Broader crypto prices fell across the board, with major altcoins all tracking weakness in Bitcoin.
World no.2 crypto Ether fell 6.33% to $2,922.06, while XRP slid nearly 6% to $1.8817.
Solana and Cardano fell 4.2% and 5.7%, respectively, while BNB shed 3.7%.
Among meme tokens, Dogecoin fell 5.7%, while $TRUMP shed 4.2%.
Most altcoins were close to multi-month lows, pressured by extended selling in crypto markets.
Bitcoin and other cryptos also largely wiped out their gains in 2025, trading negative for the year after an extended price rout since mid-October, which has shown few signs of easing.
