Bitcoin traded lower during Asian hours on Thursday, extending a pullback from its early-year rebound as investor risk appetite remained subdued amid rising geopolitical tensions across Asia and Latin America.
Caution ahead of key U.S. nonfarm payrolls data also kept traders on the sidelines, with investors waiting for clearer signals on the outlook for the world’s largest economy before committing to major positions in crypto markets.
Bitcoin declined around 1.5% to $91,093 by 00:06 ET, after briefly dipping to an intraday low near $90,643. The cryptocurrency’s recovery attempt in the new year stalled after it failed to regain the $95,000 level, which has emerged as a key resistance zone.
Sentiment was further pressured by uncertainty surrounding crypto treasury firms, particularly Strategy Inc, the largest corporate holder of Bitcoin. Strategy, which is nursing losses of nearly 50% so far in 2025, found only limited support after MSCI said it would not move forward with a proposal to remove digital-asset treasury companies from its indexes. However, MSCI confirmed it will continue a broader review of index inclusion criteria.
Bitcoin recovery weighed down by geopolitical risks
Demand for risk-sensitive assets such as cryptocurrencies remained constrained as geopolitical tensions intensified in key regions.
In Asia, an ongoing diplomatic dispute between China and Japan escalated after Beijing imposed new export restrictions on Tokyo and launched an anti-dumping investigation into Japanese chemical producers. Chinese media also raised the prospect of curbs on rare earth exports to Japan, a development that could severely impact the country’s manufacturing sector.
The dispute traces back to comments made in late 2025 by Japanese Prime Minister Sanae Takaichi regarding potential military intervention in Taiwan, remarks that were strongly criticized by Beijing.
In Latin America, markets remained focused on the fallout from a U.S. incursion into Venezuela, which resulted in the capture of President Nicolas Maduro. Reports suggested U.S. President Donald Trump is preparing a plan to assume long-term control over Venezuela’s oil industry, a move that could heighten political instability and strain relations with China.
The weekend operation rattled global financial markets earlier this week, boosting demand for traditional safe havens such as gold and the U.S. dollar. Bitcoin, however, lagged this defensive shift.
Altcoins fall alongside Bitcoin as payrolls data approaches
Broader cryptocurrency prices moved lower in tandem with Bitcoin, giving back much of their gains from the start of the year.
Investor caution increased ahead of December’s U.S. nonfarm payrolls report, due on Friday, which is expected to play a key role in shaping interest-rate expectations for the Federal Reserve. Markets currently anticipate the central bank will keep rates unchanged in the near term.
Ether fell 2.8% to around $3,156, while XRP, which had outperformed earlier in the week, slid 4%. Solana and Cardano declined 0.6% and 2.2%, respectively, while BNB dropped 1.8%.
Among meme tokens, Dogecoin eased 0.6%, while the TRUMP token slipped 1.1%.
