Cryptocurrency prices declined during trading on Tuesday, amid limited trading ahead of the release of the Federal Reserve minutes, and as 2025 draws to a close.
The price of Bitcoin fell by 2.5% to trade at $87,458.6, after briefly surpassing the $90,000 level yesterday.
The world’s most popular and largest cryptocurrency by market capitalization failed to maintain its recovery above the $90,000 level, affected by a decline in institutional demand.
Cryptocurrencies continue to decline, contrary to all expectations, which indicated strong gains this year, with Donald Trump, a supporter of the crypto sector, assuming the presidency of the United States in January 2025.
Trading operations were significantly affected by low liquidity during the New Year holidays, leading to increased price volatility.
Caution also dominated investor trading ahead of the release of the minutes from the Federal Reserve's December monetary policy meeting, due later today.
Earlier this month, US Federal Reserve policymakers decided to cut interest rates by 25 basis points.
The US Federal Reserve is expected to continue cutting interest rates next year, boosting high-risk assets, including digital currencies.
As for other cryptocurrency prices, Ethereum fell by about 3% to $2,949.92, and Ripple declined by about 1.6% to trade at $1.86.
Solana's currency fell by 3%, while Cardano dropped by 6.5% and Polygon lost more than 4% of its value.
Among the meme currencies, Dogecoin and Trump Media both saw their prices drop by 3%.
