Crypto Rally Fades as Geopolitical Risks Re-Enter Focus: Laser Digital

Group 1: Market Overview - Cryptocurrency markets started the week strong, supported by institutional buying and inflows into Bitcoin ETFs [1] - Bitcoin broke above the $95,000 resistance level, reaching a range of $97,000–$98,000, driven by demand from corporate buyers like MicroStrategy [2] - Despite initial bullish momentum, buying pressure eased, leading to price consolidation around $95,000, indicating vulnerability to macro shocks [3] Group 2: Geopolitical Impact - Renewed geopolitical tensions arose after former U.S. President Donald Trump's proposed tariffs on EU and NATO countries, negatively impacting broader risk markets [4] - This geopolitical shift led to aggressive selling in digital assets, with Bitcoin dropping to approximately $92,500 and Ethereum to around $3,200, erasing most prior gains [5] Group 3: Near-Term Outlook - Near-term price action for Bitcoin is expected to be reactive to U.S.–EU trade tensions, with potential pressure on risk assets if tensions escalate [7] - The upcoming week is busy with key macro events, including the World Economic Forum, U.S. GDP and PCE inflation data, and a Bank of Japan policy meeting, which could influence market volatility [8]