Bitcoin edged lower during Asian trading hours on Tuesday, underperforming global equity markets as investors remained cautious ahead of key U.S. inflation data and amid rising geopolitical risks that reduced demand for high-risk assets.
The largest cryptocurrency by market value slipped around 0.2% to trade near $91,895 by early morning ET. Bitcoin has found it difficult to regain momentum toward the end of 2025 and into early 2026, with overall enthusiasm for digital assets fading. Investor attention has increasingly shifted toward artificial intelligence and major technology stocks, drawing capital away from crypto markets.
Inflation data in focus as rate uncertainty lingers
Market participants were closely watching the release of December’s U.S. Consumer Price Index, which is expected to show annual headline inflation holding steady at 2.7%, while core inflation is projected to tick slightly higher.
If inflation proves more persistent than expected, the Federal Reserve may have less room to begin cutting interest rates in the near term. Uncertainty surrounding the central bank has also intensified following comments from Fed Chair Jerome Powell, who revealed he had faced potential legal pressure from the U.S. Department of Justice earlier this week.
Although the issue was officially linked to renovations at the Federal Reserve’s headquarters, Powell suggested the move could be interpreted as an attempt to influence monetary policy decisions. His remarks sparked concerns about the Fed’s independence, particularly as President Donald Trump prepares to name a successor. Trump has repeatedly criticized Powell and pushed for aggressive rate reductions.
Altcoins weaken as global tensions weigh on risk appetite
The broader cryptocurrency market mostly followed Bitcoin lower, with investor sentiment dampened by escalating geopolitical developments worldwide.
Rising unrest in Iran, along with speculation over possible U.S. involvement, unsettled global markets and pushed oil prices higher. Meanwhile, diplomatic tensions between China and Japan showed little sign of easing. These factors prompted investors to seek safer assets such as gold, while technology stocks benefited from sustained optimism around artificial intelligence.
The rapid growth of the AI sector has also weakened the historical correlation between cryptocurrencies and tech stocks, with AI-related equities significantly outperforming Bitcoin throughout 2025.
Among major altcoins, Ether declined roughly 0.7% to around $3,137. XRP also fell 0.7%, while BNB posted a modest gain of 0.2%. Solana dropped more than 2%, and Cardano slid about 1.4%. Meme tokens were also under pressure, with Dogecoin down 1.3% and the $TRUMP token falling approximately 1.5%.
