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Bitcoin started the week with a solid 2.8% gain, climbing toward $94,400 as a global rebound in technology stocks renewed risk appetite.
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The rise aligns with optimism around artificial intelligence (AI) development, which typically benefits higher-beta assets like cryptocurrencies.
However, the rally remains tempered by geopolitical tensions and looming macroeconomic data.
Geopolitical Tensions and Jobs Data Weigh on Momentum
Market enthusiasm was curbed by rising geopolitical risk following recent U.S. military action against Venezuela, which heightened systemic uncertainty. Additionally, investors are awaiting key U.S. economic data, particularly the December nonfarm payrolls report.
A strong labor market could delay Federal Reserve interest rate cuts, while weaker data might reinforce expectations for a more accommodative policy—both scenarios critically impacting risk asset sentiment.
Bitcoin Still Down 6.4% for 2025 Amid Cautious Sentiment
Despite the weekly rebound, Bitcoin remains down approximately 6.4% year-to-date in 2025. This reflects cooling institutional interest and broader doubts about adoption and sustainable growth that emerged in late 2024.
In a risk-off environment, traditional safe-haven assets like gold and the U.S. dollar have attracted stronger demand, partially diverting capital from volatile cryptocurrencies.
MicroStrategy Continues Bold Bitcoin Accumulation Strategy
In a significant vote of confidence, MicroStrategy, the largest public corporate holder of Bitcoin, purchased an additional 1,287 bitcoins for about $116 million.
This brings its total holdings to 673,783 BTC, reinforcing its long-term conviction in the digital asset. Simultaneously, the company bolstered its cash reserves to roughly $2.25 billion, positioning itself to navigate uncertainty and seize opportunities in 2026.
Outlook: Gradual Advances Amid Persistent Volatility
Bitcoin’s recent price action reflects a market caught between supportive tech-sector momentum and constraining macro-geopolitical headwinds.
Analysts suggest that without clearer signals on monetary policy and a reduction in global risk, the cryptocurrency is likely to experience gradual advances interspersed with volatility, rather than a sustained bullish trend in the near term.
