Bitcoin Slips to $91.8K as Markets Turn Cautious Ahead of U.S. CPI Release

Bitcoin edged lower in Asian trading on Tuesday, underperforming gains seen in global equity markets as investors remained cautious ahead of a key U.S. inflation report and amid rising geopolitical tensions that dampened appetite for risk-heavy assets.

The world’s largest cryptocurrency fell around 0.2% to $91,894.6 by 00:33 ET (05:33 GMT). Bitcoin has found it difficult to regain momentum through late 2025 and early 2026, as overall sentiment toward the crypto sector cooled. A growing investor focus on artificial intelligence and technology stocks has also diverted capital away from digital assets.

CPI Data in Focus as Rate Uncertainty Lingers

Investor attention on Tuesday was firmly centered on the release of the U.S. consumer price index (CPI) data for December, which is expected to provide further guidance on the Federal Reserve’s interest-rate outlook.

Economists forecast headline CPI to remain unchanged at an annual rate of 2.7%, while core inflation is expected to show a modest increase. Any signs that inflation remains sticky could reduce the likelihood of near-term rate cuts by the Federal Reserve.

Concerns surrounding the central bank have also weighed on market sentiment. Earlier in the week, Federal Reserve Chair Jerome Powell revealed that he had received threats of legal action from the U.S. Department of Justice.

Although the threats were officially linked to cost overruns tied to the renovation of the Fed’s headquarters, Powell said he believed the move was aimed at pressuring the central bank to comply with political demands for lower interest rates. His comments reignited fears over the Fed’s independence, particularly as President Donald Trump prepares to announce a nominee to succeed Powell.

Trump has repeatedly urged the Fed to aggressively cut rates and has publicly criticized Powell for resisting political pressure.

Altcoins Drift Lower as Geopolitical Risks Weigh

Broader cryptocurrency markets largely mirrored Bitcoin’s weakness, with most altcoins trading lower as global geopolitical uncertainty further constrained demand for speculative assets.

Escalating unrest in Iran, combined with concerns over potential U.S. intervention, unsettled markets and pushed oil prices higher. In Asia, an ongoing diplomatic dispute between China and Japan showed little sign of easing, adding to broader investor unease.

These developments encouraged flows into traditional safe-haven assets such as gold. Meanwhile, technology stocks continued to attract buying interest amid sustained optimism surrounding artificial intelligence.

AI-driven equities have increasingly decoupled from cryptocurrencies, with the tech sector significantly outperforming Bitcoin in terms of returns throughout 2025.

Among major cryptocurrencies, Ether slipped 0.7% to $3,136.69. XRP also declined 0.7%, while BNB edged 0.2% higher. Solana fell 2.1%, and Cardano dropped 1.4%.

In the meme-coin space, Dogecoin lost 1.3%, while the $TRUMP token declined by 1.5%.