Bitcoin Price Today: BTC Slips Below $88,000 as Rebound Stalls Ahead of Key U.S. Economic Data - Coinedict

Bitcoin fell back below the $88,000 mark on Tuesday, giving up recent gains as traders turned cautious ahead of a slate of important U.S. economic data that could influence expectations around interest rates and risk assets.

The world’s largest cryptocurrency declined 2.6% to around $87,655 by early U.S. trading hours, after briefly recovering to near $90,000 earlier in the week. The pullback reflects renewed risk aversion, with investors reluctant to increase exposure amid macro uncertainty and thin year-end liquidity.

Broader Crypto Market Pulls Back

The weakness in Bitcoin spilled over into the broader crypto market, though losses were contained as trading volumes remained light due to the holiday period.

Ethereum fell roughly 3.7% to $2,941, while Binance Coin (BNB) slid 1.7% to $848. XRP dropped 2.2% to $1.88, and other major altcoins also tracked lower, with Solana and Cardano down 2.5% and 2.9%, respectively. Meme coins followed the trend, with Dogecoin declining 2.3%.

Despite the pullback, analysts noted that the absence of panic selling suggests positioning remains defensive rather than outright bearish.

Bitcoin Rally Loses Steam Ahead of U.S. Data

Bitcoin’s recent rebound lost momentum as markets looked ahead to key U.S. economic releases scheduled for later Tuesday. These include third-quarter GDP data and the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge.

GDP figures are expected to show a modest slowdown in growth, reflecting softer consumer spending and a cooling labor market. Meanwhile, PCE data will be closely watched for signals on inflation trends and the potential path of U.S. monetary policy.

While any evidence of easing inflation could strengthen expectations for future rate cuts, analysts cautioned that recent data may be distorted. Government shutdown disruptions during October and November could limit the reliability of near-term indicators, placing greater emphasis on December and early-2026 data for a clearer economic outlook.

Strategy Pauses Bitcoin Purchases, Builds Cash

Adding to the cautious tone, Strategy—the world’s largest corporate holder of Bitcoin—paused its aggressive buying streak in recent weeks.

In a regulatory filing, the company disclosed that it raised $748 million in the week ending December 21 but made no new Bitcoin purchases during that period. Earlier this month, Strategy had acquired nearly $2 billion worth of BTC, lifting its total holdings to 671,268 Bitcoin.

The move appears to signal a more defensive posture as markets cool. Strategy has also reportedly set aside approximately $1.4 billion in reserves to cover dividend and interest obligations, fueling speculation that prolonged weakness in Bitcoin prices could strain its balance sheet.

Investor concerns have weighed heavily on Strategy’s stock, which has fallen sharply in 2025. Additional pressure came after the company was excluded from a major MSCI index, raising questions about long-term sustainability of its leveraged Bitcoin strategy.

Market Outlook

With Bitcoin struggling to reclaim $90,000 and macro uncertainty dominating sentiment, traders appear focused on capital preservation rather than chasing upside. Thin liquidity into year-end could continue to amplify short-term price swings, especially if upcoming U.S. data surprises markets.

For now, Bitcoin remains range-bound, with analysts watching whether support near the mid-$80,000 zone can hold—or whether renewed macro pressure forces a deeper consolidation before 2026.