Bitcoin Pulls Back Below $88,000 as Traders Brace for Key U.S. Data

Key Moments

Bitcoin Retreats as Risk Appetite Softens

Bitcoin traded lower on Tuesday, interrupting its latest recovery as investors adopted a more cautious stance toward digital assets amid an increasingly risk-averse backdrop.

The leading cryptocurrency declined 1.1% to $87,815.3 by 00:57 ET (05:57 GMT). Earlier this week, Bitcoin had climbed as high as $90,000 before giving back some of those gains on Tuesday.

Other major cryptocurrencies also reversed a brief upward move. However, the pullback across the crypto complex remained relatively contained, with thin liquidity around the year-end holidays helping to limit the extent of the declines.

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Macro Uncertainty Weighs Ahead of U.S. Data

The latest pause in Bitcoin’s advance came as markets awaited several closely watched U.S. economic releases due later on Tuesday.

Third-quarter gross domestic product data is anticipated to indicate that growth slowed modestly compared with the prior quarter, amid softer retail spending and signs of a cooler labor market.

Also scheduled is October personal consumption expenditures index data, the Federal Reserve’s preferred inflation measure.

Any evidence of further moderation in the U.S. economy, particularly in inflation, is seen as potentially paving the way for additional interest rate cuts by the Federal Reserve.

At the same time, analysts cautioned that incoming data for December and the fourth quarter will likely be more informative about the underlying trajectory of the U.S. economy, noting that readings for October and November are likely to have been affected by a prolonged government shutdown.

Strategy Inc Steps Back From Bitcoin Buying

Michael Saylor’s Strategy Inc (NASDAQ:MSTR), described as the world’s largest corporate holder of Bitcoin, has recently pulled back from adding to its Bitcoin position and instead bolstered its cash levels, signaling preparation for potential further weakness in crypto markets.

In a filing, Strategy reported that it raised $748 million in the week to December 21 without purchasing any additional Bitcoin. Earlier in December, the company had bought about $2 billion worth of Bitcoin, increasing its total holdings to 671,268 coins.

The firm’s stock has faced pressure in recent months as investors questioned the sustainability of its Bitcoin-centric approach.

Earlier in December, Strategy was reported to have set aside a $1.4 billion reserve intended for future dividend and interest payments on its multiple capital commitments. The move followed concerns that a prolonged downturn in Bitcoin prices could force the company to liquidate part of its holdings to meet those obligations.

According to the article, Strategy’s primary share class lost roughly half of its value in 2025, with the company’s recent exclusion from a key MSCI index further weighing on the stock.

Altcoins Track Bitcoin Lower

The broader digital asset market moved in tandem with Bitcoin, surrendering part of its recent gains.

Ether, the second-largest cryptocurrency by market size, fell 1.8% to $2,970.31. BNB declined 1% to $850.50, while XRP dropped 1.8% to $1.8829.

Solana and Cardano were also weaker, slipping 0.8% and 0.2%, respectively. In the meme-coin segment, DOGE edged down 0.5%, and $TRUMP retreated 2.1%.