Bitcoin Extends Pullback as Cautious Mood Builds Ahead of U.S. Payrolls Data

Key Moments

Bitcoin Weakens as Risk Appetite Stays Fragile

Bitcoin came under renewed pressure on Tuesday, deepening its recent slide as demand for higher-risk assets, particularly cryptocurrencies, remained subdued ahead of several major U.S. economic indicators.

Digital asset prices broadly mirrored a continued pullback in global technology shares, where investors took profits following a strong run driven by artificial intelligence themes. The retreat in tech stocks weighed further on sentiment toward cryptocurrencies and other risk-sensitive markets.

By 00:35 ET (05:35 GMT), Bitcoin was down 4% at $85,987.9, hovering near its weakest level in roughly two weeks. The token also traded close to a seven-month low reached in late-November.

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Fed Policy, Upcoming Data Keep Bulls on the Defensive

Over the past week, Bitcoin has steadily lost ground, finding limited support even after the Federal Reserve cut interest rates and signaled a dovish stance on future monetary policy.

Market risk appetite remained fragile as participants looked ahead to data likely to influence the Fed’s next steps. Nonfarm payrolls figures for November were scheduled for release later on Tuesday, followed by consumer price index inflation data on Thursday.

The labor market and inflation were described as the Fed’s two main factors in adjusting policy. Any evidence of weaker payroll growth and softer inflation was seen as likely to bolster expectations for further reductions in interest rates.

Such an environment could prove supportive for Bitcoin and other speculative instruments, as lower borrowing costs generally enhance the relative appeal of high-risk assets, including cryptocurrencies.

In addition, the Fed began repurchasing short-dated Treasuries over the past week, adding liquidity to financial markets and potentially encouraging renewed interest in speculative trades such as crypto. The combination of ultra-low interest rates and these liquidity operations – referred to by some as quantitative easing – had been identified as a major factor behind the cryptocurrency bull market in 2021.

Altcoins Mirror Bitcoin’s Declines

The broader crypto complex moved lower in tandem with Bitcoin, with most major altcoins registering notable losses.

Ether, the second-largest cryptocurrency by market value, slid 6.33% to $2,922.06, while XRP dropped nearly 6% to $1.8817. Solana and Cardano declined 4.2% and 5.7%, respectively, and BNB lost 3.7%.

Among meme-linked tokens, Dogecoin fell 5.7%, and $TRUMP retreated 4.2%.

Most altcoins traded near multi-month lows, under pressure from sustained selling across the crypto space.

Year-to-Date Gains Erased After October Rout

Bitcoin and a wide range of other digital assets largely surrendered their gains for 2025, moving into negative territory for the year. The declines followed a prolonged downturn that began in mid-October and has, so far, shown limited signs of stabilizing.