Bitcoin moved little on Tuesday, settling in a narrow trading range, as fading hopes for a US-Iran peace deal and caution ahead of key inflation data kept cryptocurrency markets on edge.
The world's largest cryptocurrency rose 0.5% to $81,276.10.
Bitcoin had risen to $82,000.00 over the weekend, but has since given up some of its gains amid signs of escalating tensions between the United States and Iran.
Attention this week is also focused on a US-China summit, which comes amid escalating tensions between the world's two largest economies.
A peace agreement with Iran seems unlikely, and Trump is considering additional military options.
Risk appetite waned on Tuesday following reports that U.S. President Donald Trump was considering additional military options against Iran, although any decision this week appeared unlikely.
This came after Trump largely rejected the Iranian response to the American peace proposal, and announced that he was considering resuming an operation aimed at restoring commercial shipping traffic in the Strait of Hormuz.
Trump also warned that the ceasefire with Iran was on life support, a statement that could signal a resumption of military operations in the Middle East.
These developments kept markets on edge, with most Asian markets declining on Tuesday, and Wall Street futures also falling.
Watch US consumer price index data for clues about inflation and interest rates.
Attention on Tuesday also centered on the upcoming Consumer Price Index data, with a clear focus on whether the sharp rise in oil and gas prices, as a result of the war with Iran, has been reflected in US inflation.
Headline inflation for the Consumer Price Index (CPI) is expected to have risen sharply in April compared to the previous month, while core CPI is expected to remain stable.
The April reading follows March's consumer price index data, which already showed a rise in inflation driven by energy prices, although analysts have indicated that this effect will likely be more pronounced in the April reading.
A sharp rise in inflation would likely further damage expectations of a Federal Reserve interest rate cut in 2026, a scenario that does not bode well for speculative assets such as cryptocurrencies.
Cryptocurrency prices today: Altcoins fluctuate amid growing caution
Cryptocurrency prices moved little on Tuesday, as concerns over the conflict with Iran and US consumer price index data kept markets on edge.
Ether, the world's second-largest cryptocurrency, fell 1% to $2,313.55, while XRP rose 0.7% to $1.46.
Solana, Cardano and BNB all moved within a narrow range, while Dogecoin rose 0.3% among meme coins, and $TRUMP fell 1.7%.
