KUALA LUMPUR: Geopolitical tensions in Venezuela, triggered by a US military strike and the capture of President Nicolás Maduro, have helped drive renewed risk appetite in the global cryptocurrency (crypto) market, lifting Bitcoin above US$93,000 on Tuesday for the first time in three weeks.
Bitcoin’s sharp price swings and a steady increase in institutional involvement are set to remain major drivers of the global cryptocurrency market in 2026, said Luno, a digital asset platform.
This comes amid ongoing macroeconomic and geopolitical uncertainties, which continue to contribute to market volatility.
In its latest market outlook, Luno said Bitcoin, the world’s largest crypto by market capitalisation, extended its rally last year to reach an all-time high of US$126,200 in early October on its platform last year before retreating to open 2026 at US$87,825.
The reversal, it noted, reflected a confluence of market pressures, including leverage-driven liquidations, significant outflows from Bitcoin exchange-traded funds, softer expectations of US Federal Reserve rate cuts and signs of a weakening labour market.
Bitcoin recorded strong gains of 160 per cent in 2023 and 125 per cent in 2024.
The crypto market gained momentum from Bitcoin exchange-traded funds approvals in 2024 and was further supported by Trump‘s crypto-friendly stance, generating US$802 million for his organisation in early 2025.
“Crypto markets today are highly interconnected with global macroeconomic signals and geopolitical developments,” Luno Malaysia senior business development manager Benjamin Chuang said, as he told Business Times.
While short-term price movements may remain volatile, institutional participation and clearer regulatory frameworks continue to underpin longer-term growth.
Chuang said cryptocurrencies are increasingly being viewed as a portfolio diversification tool, a shift reinforced by growing recognition among major financial institutions and asset managers.
Institutional adoption gains pace
Reflecting on last year’s performance, Chuang said institutional adoption strengthened amid improving policy clarity in major markets.
“2025 saw stronger regulatory support for crypto, particularly in the United States under a more pro-crypto policy environment, which helped accelerate institutional engagement.
“With clearer rules in place, we saw banks such as JPMorgan launching tokenisation initiatives, including its first money market fund on blockchain, while also exploring the development of a proprietary stablecoin,” he said.
Since 2009, Chuang said Bitcoin has outperformed most traditional asset classes on a long-term basis but cautioned that it is still subject to cycles of outperformance and underperformance.
“We expect the market to continue growing steadily in 2026, supported by ongoing institutional interest, the expansion of stablecoins, the acceleration of decentralised finance applications and further regulatory clarity.
“Over the past two years, we’ve seen a meaningful rise in institutional adoption. That momentum is likely to carry forward, even if macro uncertainties and geopolitical events continue to introduce volatility,” added Chuang.
Malaysia’s regulated path to growth
Malaysia is moving in the same direction as global markets, but within a tightly governed regulatory framework designed to balance innovation and investor protection.
The country’s digital asset industry is supervised by the Securities Commission Malaysia, which recognises cryptocurrencies as digital assets for trading but not as legal tender.
Trading is permitted only through registered Digital Asset Exchanges that comply with requirements covering custody standards, investor safeguards, transparency and anti-money laundering controls.
“Interest in digital assets is also expanding in Malaysia, with several corporates and financial institutions exploring areas such as ringgit-pegged stablecoins and tokenisation initiatives,” said Chuang.
On the retail front, Chuang said Malaysian investors have become more informed and calculated in their trading strategies.
“Rather than playing it safe by spreading exposure across the five largest cryptocurrencies by market capitalisation, we see Malaysians taking the opportunity to build positions in trending tokens,” he said.
He added that this approach contributed to surges in trading volumes for certain niche cryptocurrencies that would typically see lower activity.
© New Straits Times Press (M) Bhd
