Bitcoin fell during the Asian session on Thursday, extending a reversal of its early-year recovery as risk remains limited due to heightened geopolitical risks in Latin America and Asia.
Awaiting key US non-farm payrolls data also curbed large bets in crypto markets, as investors sought more definitive signals about the health of the world's largest economy.
Bitcoin fell 1.5% to $91,093.8 by 8:06 AM Moscow time, briefly dipping to $90,642.7. The largest cryptocurrency's recovery earlier in the year stalled after failing to return to the $95,000 level.
Uncertainty surrounding companies holding cryptocurrency in their treasuries, particularly the largest corporate holder, Strategy Inc (NASDAQ:MSTR), also weighed on the crypto market. Strategy, which is facing nearly 50% losses in 2025, received limited relief after MSCI announced it would not exclude companies with digital assets in treasury from its indices.
The index operator will, however, continue a broader review of index inclusion requirements.
Bitcoin's recovery is hampered by heightened geopolitical risks.
Risk-driven appetite for cryptocurrencies remains limited due to rising geopolitical risks in Asia and Latin America.
In Asia, the long-running diplomatic conflict between China and Japan escalated this week after Beijing imposed export restrictions on Tokyo and launched an anti-dumping investigation into Japanese chemical companies.
Chinese media have raised the possibility of Beijing restricting rare earth metal exports to Japan—a scenario with serious implications for Japan's vast manufacturing sector. The diplomatic conflict largely stems from comments made by Japanese Prime Minister Sanae Takaichi in late 2025 about military intervention in Taiwan, which were rejected by Beijing.
In Latin America, markets were awaiting developments following the US intervention in Venezuela, which resulted in the capture of President Nicolás Maduro.
US President Donald Trump was reportedly preparing to seize control of Venezuela's oil industry for decades—a move that could anger China and trigger increased political instability in the region.
The US intervention in Venezuela over the weekend rocked financial markets earlier this week, boosting demand for safe-haven assets like gold and the dollar. Bitcoin largely lagged this trend.
Cryptocurrency Prices Today: Altcoins Track Bitcoin Downward, US Employment Data Ahead
Prices for a broader range of cryptocurrencies largely fell along with Bitcoin, reversing most of their gains from the start of the year.
Caution has increased ahead of key US nonfarm payrolls data for December, due out on Friday. This data is expected to impact the Federal Reserve's interest rate plans amid growing expectations that the central bank will leave rates unchanged soon.
The world's second-largest cryptocurrency, Ether, fell 2.8% to $3,156.15, while XRP, which was this week's top gainer, fell 4%.
Solana and Cardano lost 0.6% and 2.2%, respectively, while BNB fell 1.8%. Among meme tokens, Dogecoin fell 0.6%, while $TRUMP lost 1.1%.