- Bitcoin fell marginally on Tuesday, extending its tepid performance from last week as traders remained sidelined by recent trade tariffs from U.S. President Donald Trump, and upcoming crucial inflation data.
The world’s largest cryptocurrency slipped 0.4% to $97,053.0 by 09:13 ET (14:13 GMT).
Bitcoin has continuously moved in narrow ranges since last week, when fears of a global trade war deepened after retaliatory tariffs from China, followed by Trump’s levies on all steel, and aluminum exports.
Markets were also awaiting consumer price index (CPI) inflation data, due on Wednesday, to gauge the Federal Reserve’s rate outlook, especially after it turned hawkish in December.
These factors have largely countered the optimism around friendlier crypto regulations under Trump administration- expectations of which had pushed Bitcoin to a record high above the $108,000 level.
Fed expected to keep rates higher for longer
A recent Reuters poll indicated that the Federal Reserve is likely to postpone additional interest rate cuts until the next quarter, largely due to concerns about inflation rising as a result of recent tariff policies.
Economists who had earlier predicted a rate cut in March have now adjusted their forecasts, signaling that the Fed may take a more cautious stance in response to possible inflationary pressures, the poll found.
Higher interest rates in the U.S. can negatively affect cryptocurrencies by reducing investor appetite for riskier assets, increasing the opportunity cost of holding non-yielding assets like Bitcoin, and strengthening the U.S. dollar, which often pressures crypto markets.

When interest rates are higher, borrowing costs increase, leading to a slowdown in economic activity and a shift of capital from speculative assets like cryptocurrencies to safer, yield-generating options such as bonds and money market funds.
This reduces liquidity in the crypto market, making it harder for Bitcoin and other digital assets to sustain price rallies.
Historically, Bitcoin has performed best in low-rate environments where excess liquidity fuels speculative trading.
However, if inflation cools and the Fed signals a pause or rate cuts, crypto markets could see renewed investor interest.
Crypto price today: altcoins muted, Cardano outperforms
Most altcoins were also slightly higher, in line with Bitcoin’s movement.
World no.2 crypto Ether lost 0.5% to $2,649.11 on Tuesday.
World no. 3 crypto XRP climbed 1% to $2.46.
Solana fell 4.4% and Polygon traded 2.1% higher, while Cardano surged over 12%.
Among meme tokens, Dogecoin edged rose 2.3%, while $TRUMP fell more than 3%.
Ethereum a big underperformer but fundamentals 'not murky', Citi says
Ethereum has been one of the biggest underperformers among major cryptocurrencies this year, falling around 22%.
However, though user activity has been volatile, Citigroup (NYSE:C) strategists point out that the broader fundamentals are "not all that murky," with total value locked (TVL) increasing, ETF inflows continuing, and search interest rising.
Strategists also highlight that Donald Trump-linked World Liberty Financial holds over $200 million in Ether, which could add political weight to the push for greater US support of the crypto industry.

Ethereum’s competitive position has come under scrutiny recently, as Layer 2 networks and Solana have seen stronger user growth over the past year.
"In our view, relative ETH and alt-coin performance may serve as a gauge for how optimistic the industry is regarding follow-through on regulatory clarity in the US," Citi strategists led by Alex Saunders said in a note.
Ethereum’s recent weakness has coincided with a rise in Bitcoin dominance, which now sits at multi-year highs of approximately 61%.