Bitcoin rose modestly on Tuesday amid fresh buying by MicroStrategy (NASDAQ:MSTR) even as broader crypto markets cooled, weighed down by President Trump's criticism of the Federal Reserve and U.S.-China trade tensions.

Market Snapshot

• Bitcoin: +0.7% to $88,194.90 (01:33 ET / 05:33 GMT)

• Broader Crypto: Altcoins drifted lower after lagging Bitcoin's holiday rally

MicroStrategy's $556 M BTC Purchase

• Acquisition: 6,556 BTC for $555.8 million, funded via equity offerings

• Total Holdings: Now 538,200 BTC on the balance sheet

• Sentiment Boost: The buyback helped lift Bitcoin against the backdrop of its 5.6% YTD decline

Macro Headwinds Dampening Risk Appetite

• Fed Independence Fears:

  • Trump's team continues exploring removal of Fed Chair Jerome Powell, unsettling markets.

• Tariff Uncertainty:

  • Ongoing U.S.-China trade dispute clouds economic outlook and demand for risk assets.

• Legacy Losses:

  • MicroStrategy's earlier disclosure of a nearly $6 billion unrealized crypto loss still looms over sentiment.

What's Next

Investors will monitor:

1. Federal Reserve Commentary for clues on rate path and policy independence

2. U.S.-China Trade Talks for any easing or escalation that could sway risk flows

3. MicroStrategy Filings for further BTC purchases or equity raises

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