Cryptocurrency markets started last week on firm footing assisted via aggressive institutional buying and continued inflows into spot Bitcoin exchange-traded funds (ETFs).
Bitcoin ultimately broke above the closely watched $95,000 resistance level after multiple failed tries in latest weeks rallying into a $97,000–$98,000 range. The move was caused by using sustained demand from big company buyers consisting of MicroStrategy along enhancing sentiment around regulated investment vehicles, as per Laser Digital.
In spite of the bullish breakout momentum proved tough to maintain. As the week advanced buying pressure eased and prices commenced to consolidate around the $95,000 level suggesting the rally had become increasingly more prone to macro-driven shocks.
Tariff Headlines Trigger Risk-Off Move
Over the weekend renewed geopolitical tension weighed closely on broader risk markets after former U.S. President Donald Trump proposed new tariff measures focusing European Union and NATO countries.
While crypto assets seemed insulated from the news sentiment deteriorated sharply as soon as U.S. Equity futures opened weaker for the duration of early Asian trading hours.
This shift induced aggressive selling across digital assets. Bitcoin fell to about $92,500, even as Ethereum dropped to round $3,200, effectively erasing the majority of gains recorded throughout the earlier week.
The move emphasizes crypto’s endured sensitivity to global macro and geopolitical developments, in particular all through periods of heightened uncertainty.
On Monday Bitcoin’s price action is showing near-term consolidation after a pointy pullback, with BTC trading round $93,000 following a rejection from the mid-$90,000s.
Near-Term Outlook Hinges on Macro Developments
Looking ahead near-term price action is predicted to remain highly reactive to how U.S.–EU trade tensions develops. Any escalation could pressure risk assets even as signs of de-escalation may also offer room for stabilization. Geopolitical risks in the Middle East remain accelerated with tensions boosting over the weekend and contributing to a more cautious market backdrop.
From a macro perspective, markets confronts a hectic week. Main events include the World Economic Forum in Davos, upcoming U.S. GDP and PCE inflation data and a Bank of Japan policy meeting.
Although there aren’t any scheduled Federal Reserve speeches due to the blackout period, markets may also see policy-associated developments. U.S. Treasury Secretary Scott Bessent has showed that a Fed chair declaration could occur toward the Davos Forum, adding another ability catalyst for volatility.
Caution Returns After Breakout Attempt
While last week’s breakout above $95,000 marked a technical milestone for Bitcoin the subsequent pullback indicates the delicate nature of sentiment at expanded price levels.
With macro and geopolitical risks back in target, traders are likely to remain cautious in the near term, watching for clarity on tariffs, central banks direction and broader risk appetite earlier than committing to the next directional move .
