Major alternative cryptocurrencies declined on Tuesday as trading volumes remained low, with bitcoin traders still focusing on range trading for the prominent cryptocurrency.
Bitcoin traded around $87,300, down roughly 3% over the past 24 hours, while ether decreased to about $2,950. XRP hovered around $1.86, also down for the day, as most major cryptocurrencies slipped without significant catalysts and limited engagement from U.S. trading desks.
“Bitcoin’s outlook for Q1 2026 suggests a preference for stability and renewed accumulation rather than a vigorous growth phase at the start of the year,” stated Linh Tran, a Senior Market Analyst at XS, in an email. “Price volatility may remain confined to a range of around USD 80,000 to USD 100,000.”
“Current monetary policies are not yet sufficiently supportive, ETF inflows are selective, and the regulatory landscape continues in a phase of consolidation, all of which restrict the market’s ability to quickly initiate a new bullish cycle,” Tran added.
At present, price movements reflect a market struggling to draw in new risks while many players maintain a cautious stance. With low volatility and uneven liquidity, even minor sell orders can drive prices below intraday support, especially during U.S. trading hours when tax and book-cleanup flows are typically more concentrated.
In the short term, traders are monitoring whether bitcoin can sustain levels in the mid-$80,000s into the new year, or if another thin holiday dip necessitates a deeper correction before liquidity and confidence return.
Meanwhile, Asian stocks retraced after a seven-day winning streak, with several regional markets concluding the year on Tuesday. MSCI’s Asia Pacific index dipped 0.1% after Monday’s rally marked its longest winning streak since September. U.S. futures showed little change following a 0.3% decline in the S&P 500 and a 0.5% drop in the Nasdaq 100 overnight.
A global equities index also fell for the first time in eight sessions, although it remains on pace for its best year since 2019. Gold and silver stabilized after retreating from record highs.
An additional metal, copper, extended its December climb, increasing as much as 2.2% to $12,493 a ton and aiming for a 10th consecutive gain, its longest series since 2017. A weaker dollar and renewed supply concerns have contributed to a positive sentiment.
Copper futures have risen over 40% this year, putting the red metal on track for its largest annual increase since 2009.
