Crypto roundup for Tuesday portrays the market’s mixed sentiment as geopolitical news tests the previous optimism, but anxiety ahead of this week’s key event limits the action. Additionally, a slew of mixed U.S. data and the year-end lack of participation also play their roles in restricting the market moves early morning in New York.
Amid these plays, the Bitcoin price (BTC) gains more than 1.0% as bulls cross the $88K mark to flash the $88,700 quote, after failing to stay beyond the same on Monday. Meanwhile, the spot gold price (XAU/USD) rebounds to $4,390 as traders pare the biggest daily loss since October amid sluggish trading. That said, the U.S. Dollar Index (DXY) remains firmer above 98.15 as it tries to consolidate the yearly loss during the final days of 2025.
Starting with the geopolitical news, optimism surrounding the Ukraine-Russia peace deal took a back seat amid a lack of further developments after alleged “final rounds of talks” among the U.S., Ukraine, and European leaders.
Meanwhile, U.S. President Donald Trump warned that Washington might support new strikes if Iran were found rebuilding weapons programs, while urging Hamas to disarm. On the same line, Saudi Arabia conducted airstrikes in southern Yemen and accused the UAE of supplying weapons to the targeted positions. Furthermore, China’s military drills near Taiwan also contributed to the market’s war fears, especially when the U.S. announced an arms package for Taiwan after Beijing’s notable military exercise.
Talking about the U.S. data, Housing Price Index (HPI) for October rose to 0.4% Month-over-Month (MoM) versus 0.1% expected and -0.1% prior, while the S&P/Case-Shiller Home Price Index for October eased to 1.3% Year-over-Year (YoY), from 1.4% prior, compared to 1.1% market forecast. Further, the Chicago PMI for December rose to 43.5 from 36.3, versus 39.8 expected.
On Monday, Pending Home Sales for November improved, but the Dallas Federal Reserve Manufacturing Business Index for December hit a six-month low.
Given the recently mixed U.S. data, the market’s anxiety ahead of the Federal Open Market Committee (FOMC) Minutes for the December meeting escalates. The same keeps pressure on the risk assets like cryptocurrencies and equities.
Crypto, Equity Update
Major cryptocurrency coins post modest gains as market players brace for this week’s key event, namely the FOMC Minutes. In doing so, the crypto market pays little heed to a firmer U.S. dollar amid cautious optimism among equity traders.
Bitcoin (BTC) and Binance Coin (BNB) are up more than 1.0% intraday, while Ripple (XRP) and Solana (SOL) are both posting around 0.70% gains for the day as we write. More importantly, Ethereum (ETH) rises 1.8% intraday, but Cardano (ADA) remains lackluster around the day-start levels.
On a broader front, the crypto market capitalization (market cap) rises 0.70% on the day to $2.98 trillion, while the Bitcoin Dominance remains mostly unchanged around 59.0%, versus 58.9% prior marked during the last 24 hours, according to CoinMarketCap data.
That said, some of the top crypto news are as follows, while more updates like this could be traced to our Coin Bytes.
Buzz surrounding the next Bitcoin halving gained attention as it will take place at block height 1,050,000 when there are fewer than 120,000 blocks left. As a result, the anticipated timeframe for the next halving is between late March and early April 2028.
South Korea amended its travel rule to stop “smurfing”, an action in which users break down their huge transactions to circumvent the identity checks, by accommodating transfers below 1 million won. The Korea Financial Intelligence Unit will make it mandatory for exchanges to obtain sender and recipient information for all virtual asset transfers.
U.S. Representative Maxine Waters requested a meeting with the U.S. Securities and Exchange Commission’s (SEC) Chairman, Paul Atkins, to discuss concerns over the rejection of crypto cases. Waters claimed that a hearing on what she considers to be “questionable policy changes” at the SEC was long overdue in a letter sent on Sunday to French Hill, chair of the House Financial Services Committee.
Grayscale’s chief of research, Zach Pandl, stated on Monday on CNBC’s “Crypto World” that macroeconomic pressure is still the biggest motivator. The digital asset manager’s research head also added, “Crypto’s potential next bull market is being driven by demand for alternative value repositories and more transparent rules.”
Trust Wallet CEO Eowyn Chen provided an update on the ongoing wallet verification process, confirming that forensic investigation has so far identified 2,596 wallet addresses definitively compromised in the December 25th attack that drained around $7 million in users’ funds.
Read Details: Trust Wallet Verification Set to Filter Flood of Post-Hack Claims
The People’s Bank of China (PBOC) announced that commercial banks will be permitted to pay interest on holdings in verified Digital Yuan wallets starting January 1, 2026, reshaping its central bank digital currency (CBDC) strategy.
For More: China Pivots Strategy: Digital Yuan to Pay Interest from 2026
In the case of U.S. equities, Wall Street benchmarks trade with modest losses during the initial hour of Tuesday’s trading, lacking momentum of late. The Dow Jones drops 0.10% intraday, and the S&P 500 is almost unchanged near 6,905, but the Nasdaq Composite posts a 0.20% intraday loss by press time.
Notably, news surrounding China’s push for chipmakers to use 50% of domestically made equipment for adding new capacity seemed to have tested the technology sector, especially amid a cautious mood ahead of FOMC Minutes.
On a positive side, Nvidia completed a $5 billion investment in Intel, strengthening Intel’s balance sheet and highlighting Nvidia’s strategic role in AI and computing. Additionally, stronger demand for iPhones in China helped boost Apple’s outlook.
- Gold pares the biggest daily slump since late October, posting mild gains around $4,380 by press time.
- Bitcoin (BTC) edges higher, rises more than 1.0% intraday to $88,700 at the latest.
- Ethereum (ETH) traces BTC, up nearly 1.0% intraday to $2,970 as we write.
- U.S. Dollar Index (DXY) reverses Monday’s pullback, up 0.15% on the day to 98.15 at the latest.
- U.S. equity benchmarks post mild losses, as the Dow Jones drops 0.10% intraday, and the S&P 500 is almost unchanged near 6,905, but the Nasdaq Composite posts a 0.20% intraday loss by press time.
- WTI Crude Oil extends recovery, up 1.0% intraday to $58.40 as we write.
Potentially Active Day Ahead
As this week’s key event, namely the FOMC Minutes, is up for publishing today, the markets may witness improved activity during the late hours. That said, the Fed policymakers have mostly been dovish of late, and hence a confirmation of the same by the Minutes could challenge the U.S. dollar gains, which in turn may help the cryptocurrencies to extend the latest recovery, as well as limit losses of the U.S. equities.
