Bitcoin surged to a three-week high during early Asian trading, hitting around $93,323 on Monday morning.
The surge came amid heightened political tensions after the United States attempted to oust Venezuelan President Nicolas Maduro over the weekend.
The major cryptocurrency rose 2.3%, while Ether and other tokens also posted modest gains.
Asian markets showed positive signs with technology stocks and artificial intelligence-related cues driving indices to all-time highs.
Meanwhile, gold jumped nearly 2% to above $4,400 an ounce, while silver rose 4.8%, reflecting investors turning to precious metals as a hedge against geopolitical uncertainty.
Bitcoin is seen as a hedge in volatile times, but it sometimes moves in tandem with stocks and other riskier assets.
Bitcoin’s rise is now supported by demand from crypto-native firms focused on digital assets, as well as the absence of major selling from Bitcoin miners, wealthy family offices and large investment funds, said Sean McNulty, head of APAC derivatives trading at FalconX.
After months of being stuck in a tight range, Bitcoin failed to join the stock market rally during the Christmas holiday season and ended the year down 6.5%. Its performance in early 2025 has been lackluster despite several pro-crypto policy initiatives pushed by President Donald Trump.
On January 2, investors invested $471 million in 12 U.S.-listed Bitcoin exchange-traded funds, the most since November last year, signaling a shift in market sentiment.
Traders are now watching to see if Bitcoin can sustain above $94,000, with key support around $88,000, McNulty said.
The phenomenon suggests Bitcoin is still struggling to find its identity. It is no longer just a risk asset or a hedge. Political uncertainty and volatile capital flows force it to continue dancing between two worlds, with no clear direction.
Investors hoping for Bitcoin to be a safe haven should be aware that risks still lurk behind the price spike.
