Bitcoin rebounded about 3.8% to around $64,200 as Ethereum climbed roughly 2% to $1,660, with investors watching Strategy Inc.’s strategy filing and potential Bitcoin purchases by its chairman Michael Saylor.

Earlier, Bitcoin had fallen as much as 7% to $59,101, dipping below $60,000 for the first time since October 2024 and is down about half from its October 2025 peak above $126,000.

The market focus centered on Strategy’s possible further Bitcoin buys after a small sale was disclosed, which contributed to last week’s 18% drop by weakening expectations that Strategy would stop selling its reserves.

Market participants view Strategy’s actions and potential future moves as a central factor shaping near-term direction, with risk management and exposure adjustments on analysts’ minds.

Key risks remain, including macro pressures, ETF outflows, geopolitical tensions, leverage risk, and resistance to sustaining momentum above recent highs.

Geopolitical tensions, such as Israel’s retaliatory attack on Iran, contributed to brief volatility as markets digested risk sentiment.

Traders remain cautious about the durability of the rebound, reducing risk and increasing cash to guard against further volatility.

Market mood stayed cautious amid global tensions and mixed sentiment after recent volatility.

Despite the rebound, traders remain wary of volatility and external geopolitical factors influencing sentiment.

Disclaimer notes the analysis is informational and not financial advice.

The options market shows upside skew, with five active Deribit calls including a large strike at $170,000 expiring Dec. 25, signaling high-risk bets on year-end gains.

Analysts view Saylor’s post and the 8-K filing as potential clarity on recent activity, with some noting oversold conditions and implying ongoing accumulation by Strategy.