Bitcoin retreated on Tuesday, curtailing its recent rally as traders remained highly cautious about cryptocurrencies, with key US economic readings adding to the risk-averse climate.
Bitcoin fell 1.1% to $87,815.30 by 12:57 a.m. EST (8:57 a.m. Saudi Arabia time). The world's largest cryptocurrency had recovered to as high as $90,000 this week before retreating on Tuesday.
The broader cryptocurrency market also retreated from a short-lived rally, although overall losses were limited due to low trading volumes, given the year-end holidays.
Bitcoin rally stalls as the world awaits US data.
Bitcoin's recent rally was partly affected by caution ahead of key US economic data releases later on Tuesday.
Third-quarter GDP data is expected to show a slight slowdown in growth compared to the previous quarter, particularly with fluctuating retail spending and a slowing labor market.
Also due for release is the October Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation measure.
Any signs of further slowing in the US economy, particularly in inflation, are likely to open the door to further interest rate cuts by the Federal Reserve.
But analysts warned that economic data for December and the fourth quarter will likely provide more insight into the U.S. economy, given that the October and November readings were likely affected by a prolonged government shutdown.
The strategy involves halting Bitcoin purchases and increasing cash reserves.
Strategy Inc. (NASDAQ:MSTR), owned by Michael Saylor and the world's largest corporate Bitcoin holder, has halted cryptocurrency purchases in recent weeks and increased its cash reserves, seemingly in preparation for a decline in cryptocurrency prices.
Strategy& stated in a filing that it raised $748 million in the week ending December 21, and did not purchase any Bitcoin. Earlier in December, the firm had purchased nearly $2 billion worth of Bitcoin, bringing its total holdings to 671,268 Bitcoin.
The company's shares have declined in recent months, amid growing concerns about the long-term viability of its Bitcoin strategy.
Earlier in December, Strategy& was seen setting up a $1.4 billion reserve for future dividend and interest payments on its numerous capital obligations, as the prolonged decline in Bitcoin prices raised concerns that the company might have to sell some of its holdings to meet its obligations.
The value of Strategy&'s main shares fell by almost half in 2025, and its recent exclusion from the MSCI main index has added to the pressure on the stock.
Cryptocurrency prices today: Altcoins fall, tracking Bitcoin
Prices for the broader cryptocurrency market halted their recent rally and declined, tracking Bitcoin.
Ether, the world's second-largest cryptocurrency, fell 1.8% to $2,970.31. BNB dropped 1% to $850.50, while XRP declined 1.8% to $1.8829.
Solana and Cardano fell by 0.8% and 0.2%, respectively. Among meme coins, DOGE declined by 0.5% and $TRUMP dropped by 2.1%.
