Bitcoin slipped below $64,000 on Tuesday, leading a pullback across digital assets as investors trimmed risk ahead of U.S. inflation data. The global cryptocurrency market value fell 1.57% in the past 24 hours to $2.18 trillion, according to market data.
Why the pullback
The decline comes as traders position for the latest U.S. inflation report, due out this week. The data is expected to offer clues on the Federal Reserve's interest-rate path, and investors are reducing exposure to riskier assets like crypto ahead of the release.
Bitcoin had climbed above $65,000 on Monday but couldn't hold that level. By Tuesday, it was trading around $63,993, down roughly 1.8% on the day.
Bitcoin's failed breakout
The move below $64,000 marks a reversal from Monday's attempt to push higher. The failure to sustain gains above $65,000 suggests traders are hesitant to chase the rally without fresh catalysts.
The broader market followed suit, with the total value of all cryptocurrencies dropping to $2.18 trillion. The decline was broad-based, though Bitcoin's slide was the most visible.
What to watch
The inflation report is the next major catalyst for crypto prices. A hotter-than-expected print could reinforce expectations of higher interest rates for longer, which tends to weigh on risk assets. A cooler number might ease that pressure.
Traders will be watching to see whether Bitcoin can reclaim the $65,000 level after the data. For now, the market is in a wait-and-see mode.
