Selling pressure continued to dominate Bitcoin during Thursday’s Asian session, as the cryptocurrency pulled back further from its early year rebound. Risk appetite remained limited, weighed down by escalating diplomatic tensions in East Asia and renewed uncertainty around the U.S. role in Venezuela, particularly regarding its potential influence on oil markets and strategic metal supply chains.
Traders avoided large positions ahead of Friday’s U.S. nonfarm payrolls report, which the market is treating as a key liquidity and interest rate indicator. Investors are waiting for clearer signals from the U.S. economy before committing fresh capital to high volatility assets, with crypto at the top of that list.
Bitcoin dropped 1.5% to $91,093 after briefly touching $90,642, marking another failed attempt to reclaim the $95,000–$96,000 zone that has capped upside momentum repeatedly since last week. From a technical perspective, this area remains the primary hurdle for validating any sustained bullish continuation.
The pressure was amplified by the performance of corporate Bitcoin treasury holders, led by Strategy Inc (NASDAQ:MSTR), which ended 2025 with losses nearing 50%. While MSCI stepped back from a proposal to remove digital asset treasury companies from its indexes, a broader review of inclusion criteria is still pending, keeping institutional sentiment cautious rather than reactive to headlines.
In Asia, the diplomatic dispute between China and Japan intensified this week, following export restrictions and anti-dumping probes, along with media speculation about a potential curb on rare earth shipments to Tokyo. Such a move, if enacted, carries significant implications for Japan’s manufacturing sector and regional supply chains, reinforcing the risk averse tone in Asia linked markets.
In Latin America, developments in Venezuela continue to be closely monitored after the U.S. incursion that resulted in the capture of President Nicolas Maduro. Reports suggesting a multi-year U.S. oversight of PdVSA, aimed at steering oil prices toward Trump’s $50/barrel target, raise the likelihood of geopolitical friction with China and potential political instability in the region. Despite the earlier rise in safe-haven flows into gold and the dollar, Bitcoin has not benefited at the same pace from defensive capital rotation.
Major altcoins tracked Bitcoin lower, with ETH declining to $3,156, XRP dropping 4%, ADA down 2.2%, BNB sliding 1.8%, and SOL losing 0.6%. Meme tokens also softened alongside broader risk assets, as DOGE slipped 0.6% and $TRUMP pulled back 1.1%.
Conclusion: Bitcoin remains in a short-term corrective phase, with liquidity flowing selectively and cautiously until the U.S. jobs data is released Friday. The dollar, payrolls, and geopolitical risk remain the fastest moving market drivers in the immediate outlook.
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