Key Moments
- Bitcoin declined 1.5% to $91,093.8, after briefly touching an intraday low of $90,642.7 during the Asian session.
- Heightened geopolitical tensions in Asia and Latin America, along with concerns around crypto treasury firms such as Strategy Inc (NASDAQ:MSTR), limited risk-taking.
- Crypto markets broadly softened as traders awaited key U.S. nonfarm payrolls data for December, seen as critical for the Federal Reserve’s interest rate outlook.
Bitcoin Retreats as Risk Sentiment Weakens
Bitcoin traded lower during the Asian session on Thursday, extending a pullback that has interrupted its early new year rebound. Risk appetite remained constrained as investors weighed escalating geopolitical tensions in Latin America and Asia, while also positioning cautiously ahead of upcoming U.S. economic data.
The anticipation of U.S. nonfarm payrolls data prompted many market participants to avoid taking large directional positions in crypto, as they looked for clearer signals on the trajectory of the world’s largest economy.
By 00:06 ET (05:06 GMT), Bitcoin was down 1.5% at $91,093.8, after briefly dropping to an intraday low of $90,642.7. The recent recovery in the leading cryptocurrency has stalled after it largely failed to reclaim the $95,000 level.
Today's crypto sell-off, with #Bitcoin dipping 3% to $91K amid $243M ETF outflows, underscores market sensitivity to pending US econ data & tariff risks. Yet, as institutional accumulation builds post-2025 valuation reset, this dip may signal a strategic entry point in a maturing… pic.twitter.com/MjxqBe5vR5
— Nfoz (@N_fozz) January 7, 2026
Pressure From Crypto Treasury Concerns
Sentiment was also hit by uncertainty surrounding crypto treasury companies, with particular focus on major corporate holder Strategy Inc (NASDAQ:MSTR). The company, which is facing a near 50% loss in 2025, saw only limited support from a recent decision by MSCI.
MSCI stated that it will not move forward with a proposal to exclude digital asset treasury companies from its indexes. However, the index provider will still conduct a broader review of its criteria for index inclusion, leaving some residual uncertainty over future treatment of such firms.
Geopolitical Risks in Asia and Latin America
Risk-driven demand for cryptocurrencies remained subdued as geopolitical flashpoints intensified across two key regions.
Asia Tensions Over Trade and Security
In Asia, a prolonged diplomatic dispute between China and Japan worsened this week. Beijing introduced export restrictions targeting Tokyo and initiated an anti-dumping investigation into Japanese chemical producers.
Chinese media also highlighted the possibility that China could restrict exports of critical rare earth materials to Japan. Such a move would carry serious implications for Japan’s large manufacturing industry.
The underlying dispute traces back to late-2025 remarks by Japanese Prime Minister Sanae Takaichi regarding potential military intervention in Taiwan, comments that drew strong criticism from Beijing.
Latin America on Edge After U.S. Action in Venezuela
In Latin America, markets were closely monitoring developments following the U.S.’ incursion into Venezuela, which resulted in the capture of President Nicolas Maduro.
Reports indicated that U.S. President Donald Trump was preparing to assume years-long control of Venezuela’s oil sector. Such a move could provoke a negative response from China and heighten political instability across the region.
The U.S. weekend operation in Venezuela had already unsettled financial markets earlier in the week, driving investors toward traditional safe-haven assets such as gold and the U.S. dollar. Bitcoin, however, largely failed to participate in that risk-off bid.
Altcoins Track Bitcoin Lower as Payrolls Data Looms
Broader cryptocurrency markets moved mostly in step with Bitcoin, as many major tokens gave back a substantial portion of their gains from the start of the year. Caution increased ahead of the U.S. nonfarm payrolls report for December, scheduled for Friday.
The labor market print is widely seen as an important input for the Federal Reserve’s interest rate strategy, amid rising expectations that policymakers will keep rates unchanged in the near term.
| Asset | Move | Price / Change |
|---|---|---|
| Bitcoin | Decline | -1.5% to $91,093.8 (low: $90,642.7) |
| Ether | Decline | -2.8% to $3,156.15 |
| XRP | Decline | -4% |
| Solana | Decline | -0.6% |
| Cardano | Decline | -2.2% |
| BNB | Decline | -1.8% |
| Dogecoin | Decline | -0.6% |
| $TRUMP | Decline | -1.1% |
World no.2 crypto Ether dropped 2.8% to $3,156.15, while XRP, which had outperformed earlier in the week, fell 4%.
Among major altcoins, Solana and Cardano declined 0.6% and 2.2%, respectively, and BNB retreated 1.8%.
In the meme token segment, Dogecoin slipped 0.6%, and $TRUMP lost 1.1%.
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