Bitcoin began the new year on steady footing but struggled to extend its early gains on Tuesday, as renewed concerns around corporate treasury holders slowed momentum across the crypto market. While risk appetite has improved globally, the world’s largest cryptocurrency found itself stuck in neutral as investors weighed fresh uncertainty against longer-term optimism.
As of 10:19 ET, Bitcoin was trading almost flat at $93,925, reflecting a cautious tone after a volatile 2025 that left the asset down more than 6% for the year.
Treasury Fears Cap Bitcoin’s Upside
A major source of hesitation came from Strategy Inc. (NASDAQ: MSTR), the largest corporate holder of Bitcoin. The company disclosed a $17.44 billion unrealized loss on its digital asset holdings for the fourth quarter of 2025, driven by Bitcoin’s prolonged weakness throughout last year.
The disclosure reignited investor concerns around the sustainability of large-scale Bitcoin treasury strategies. Strategy’s shares plunged nearly 50% in 2025, pressured by declining crypto prices, exclusion from a key U.S. stock index, and mounting skepticism over its debt-funded accumulation model.
Adding to market unease is the fear that further declines in Strategy’s share price could eventually force the company to liquidate some of its Bitcoin holdings to meet debt or shareholder obligations — a scenario that could introduce significant selling pressure into the market.
Risk Appetite Improves Despite Geopolitical Tensions
Outside of crypto-specific concerns, broader market sentiment has improved. Investors largely shrugged off the initial shock from a recent U.S. incursion into Venezuela, which resulted in the capture of President Nicolás Maduro. While uncertainty remains around Washington’s next steps in the region, markets appear more focused on risk assets once again.
That renewed appetite helped technology stocks outperform, although crypto assets — particularly Bitcoin — lagged the rally as investors remained selective.
Wall Street Steps Deeper Into Crypto
In a notable development for the industry, Morgan Stanley filed with the U.S. Securities and Exchange Commission for approval to launch Bitcoin and Solana exchange-traded funds. If approved, the products would mark the first direct crypto ETF offerings by a major U.S. bank.
The move highlights a broader shift among traditional financial institutions, many of which are expanding beyond custody roles into advisory and product offerings. Greater regulatory clarity under President Donald Trump has helped open the door for banks to engage more directly with digital assets that were once viewed primarily as speculative.
Altcoins Outperform as XRP Surges
While Bitcoin stalled, altcoins took the lead.
XRP jumped 11%, driven by strong inflows into spot ETFs and declining supply on major exchanges.
Ethereum climbed nearly 4% to $3,289, showing renewed strength after a quiet finish to 2025.
BNB gained around 2%, while Solana and Cardano each rallied more than 5%.
Among memecoins, Dogecoin rose 3.8%, and $TRUMP added 1.5%.
The divergence highlights a growing trend early in 2026: investors appear increasingly willing to rotate into altcoins with clearer catalysts, even as Bitcoin consolidates near key levels.
Looking Ahead
Bitcoin’s flat performance near $94,000 reflects a market at a crossroads. Institutional adoption continues to expand, regulatory clarity is improving, and risk appetite is returning — yet concerns around leveraged treasury strategies and potential forced selling remain unresolved.
For now, the spotlight has shifted to altcoins, but Bitcoin’s next move may depend on whether confidence in corporate holders stabilizes or cracks under further pressure.