Bitcoin prices stabilized on Tuesday as improving risk sentiment helped the world’s largest cryptocurrency show early strength in 2026. However, fresh concerns surrounding Bitcoin treasury firms limited further upside.
Strategy Inc (NASDAQ: MSTR), the largest corporate holder of Bitcoin, revealed on Monday that it recorded a significantly higher unrealized loss on its digital asset holdings in the fourth quarter. The losses reflected a steady decline in the value of its Bitcoin reserves throughout 2025.
Broader cryptocurrency markets also edged higher alongside Bitcoin, but gains trailed other risk-sensitive assets, particularly technology stocks.
Investor sentiment improved after markets largely brushed aside the initial shock from a U.S. military incursion into Venezuela, which resulted in the capture of President Nicolas Maduro. Attention has since shifted toward gaining clarity on Washington’s longer-term strategy for the country.
Bitcoin climbed 1.3% to $93,576.7 by 00:59 ET (05:59 GMT). Despite the rebound, the cryptocurrency remained down more than 6% over the course of 2025.
Strategy reports $17.44 billion unrealized loss in Q4
Michael Saylor’s Strategy disclosed unrealized losses totaling $17.44 billion for the fourth quarter of 2025, largely due to falling Bitcoin prices. Comparable figures for the same period in 2024 were not available, though the company had reported a net loss of $670.8 million in the prior year’s fourth quarter.
Last year, Strategy adopted new accounting rules requiring it to report the fair value of its Bitcoin holdings in earnings. The change led to sharp swings in reported profits and losses across quarterly results.
The company’s shares fell nearly 50% in 2025 as investors grew increasingly skeptical about the long-term viability of its Bitcoin accumulation strategy. Sentiment was further pressured by Bitcoin’s prolonged price weakness and Strategy’s exclusion from a major U.S. stock index.
The steep decline in Strategy’s share price has also raised concerns that the firm may eventually be forced to sell part of its Bitcoin holdings to meet debt obligations or shareholder commitments. Such a move could add significant selling pressure to the Bitcoin market.
Altcoins mostly rise, XRP outperforms
Altcoin prices broadly tracked Bitcoin’s gains, with XRP standing out among major tokens.
XRP jumped 12% amid rising inflows into spot exchange-traded funds, while data showed declining token balances on major cryptocurrency exchanges.
Ether, the second-largest cryptocurrency, gained 2% to $3,220.24. BNB added 0.6%, while Solana and Cardano rose 2.5% and 5.5%, respectively.
Among memecoins, Dogecoin edged up 0.4%, while the $TRUMP token advanced 2.6%.
