Bitcoin Slides to $85K as Asia Markets Open Lower Ahead of Key US Data
Bitcoin fell nearly 4% on Tuesday, slipping to around $85,940 as Asian markets opened on a cautious note. Investors trimmed risk across the board ahead of a packed week of US economic data that could influence the outlook for interest rates.
Asian equities were mixed in early trading. Japanese stocks edged lower, while Australian shares managed modest gains. The mood followed another weak session on Wall Street overnight, where the S&P 500 fell for a second day in a row.
US equity futures were also under pressure during Asian hours. Futures tied to the S&P 500 and Nasdaq 100 pointed lower, suggesting Wall Street could face further selling as traders wait for clearer signals on growth, inflation, and the Federal Reserve’s next moves.
Market Snapshot
Bitcoin: $85,719, down 4.1%
Ether: $2,930, down 6.1%
XRP: $1.87, down 6.2%
Total crypto market cap: $3.02 trillion, down 3.7%
Analysts Still See a Longer-Term Bull Case for Bitcoin
Despite the pullback, not everyone is bearish. Analysts at Bitfinex say the current weakness may be part of a broader consolidation phase rather than the end of the cycle.
Their research team believes improving global liquidity conditions over the coming year could leave Bitcoin “more solid than ever.” They argue the groundwork is being laid for BTC to retest its all-time high near $126,110 in 2026, supported by looser monetary policy, rising liquidity, and steady adoption.
Bitfinex also points to structural changes in the market. With annual Bitcoin issuance now below 1%, they say the halving has less impact than in previous cycles. Meanwhile, demand from ETFs, corporations, and sovereign-linked entities is absorbing far more supply than miners produce, creating a market increasingly dominated by long-term holders.
Caution Still Rules Near-Term Trading
Not all analysts are ready to lean back into risk. Lin Tran, senior market analyst at XS.com, said Bitcoin’s inability to hold above the key $90,000 level—after being rejected near $100,000—signals that caution remains firmly in control.
According to Tran, many investors are locking in gains and focusing on capital preservation as the year draws to a close, following a strong rally earlier in the cycle.
Macro Uncertainty Weighs on Risk Assets
In currency markets, the Japanese yen strengthened to around 154.85 per dollar as traders positioned for a potential Bank of Japan rate hike on Friday. If delivered, it would push rates to their highest level in three decades.
The US dollar eased for a second straight session, hovering near levels last seen in early October, as expectations grow that the Fed may continue easing over the medium term.
The broader backdrop is one of nervous consolidation. This week’s US jobs report is expected to show a softer labor market and will include revised October payroll data delayed by the federal shutdown. The US consumer price index is due Thursday, alongside retail sales and business activity figures that could either support or challenge current market expectations.
Fed Signals Remain Mixed
Federal Reserve officials are sending conflicting messages. Governor Stephen Miran said policy may be too restrictive, while New York Fed President John Williams argued the current stance is well positioned for 2026. Boston Fed President Susan Collins described the latest rate decision as a “close call,” citing ongoing inflation concerns.
In Japan, investors are watching rising bond yields closely. Ten-year government bond yields recently touched 1.97%, the highest in 18 years, prompting Bank of Japan Governor Kazuo Ueda to warn that yields are rising “somewhat fast.”
Back in the US, some strategists caution that recent data may be less reliable as agencies catch up after the shutdown. Ian Lyngen of BMO Capital Markets said that uncertainty could lead to muted market reactions this week, but if expectations are met, Treasuries could still be set up for another strong run.
Wall Street ended Monday lower as traders digested Fed commentary and braced for the data ahead. The S&P 500 and Nasdaq both posted their steepest daily declines in over three weeks on Friday, leaving equities and crypto markets especially sensitive to any surprises in the days ahead.
