Bitcoin cut its losses Monday as investors bought the popular dip below $90,000, shrugging off worries the Federal Reserve will deliver fewer rate cuts this year.  

Bitcoin rose 2.7% to $97,086.2 by 9:41 a.m. ET, rebounding from a session low of $89,664.8.

Crypto stocks rallied in morning trading Tuesday. TeraWulf rose 9%; The9 rose 8%; Riot Platforms rose 7%; CleanSpark and MicroStrategy rose 6%; MARA Holdings rose 5%; Coinbase rose 4%.

Bitcoin prices fell sharply last week, having declined six out of the previous seven sessions as potential token sales by the U.S. government eroded sentiment towards crypto.

Bitcoin found support after plunging below $90,000 as dip buyers took piled in despite an fears about fewer rate cuts this year pushing Treasury yields and dollar higher.  

Higher interest rates can exert downward pressure on Bitcoin and other cryptocurrencies, as they often lead to a stronger U.S. dollar and reduced liquidity in financial markets. 

Additionally, elevated Treasury yields have been associated with declines in Bitcoin's price, with some analysts suggesting that sustained high yields could push Bitcoin's value down to around $90,000.

Bitcoin had also been pressured by recent media reports that the Department of Justice had received court approval to sell about $6.5 billion worth of Bitcoin confiscated from the Silk Road black market. 

The U.S. government has previously liquidated Bitcoin assets acquired through law enforcement actions, and the possibility of future sales could introduce additional supply into the market, potentially impacting prices. 

This also likely opposes the idea of a strategic Bitcoin reserve under the Donald Trump administration, further weighing on the token.

Michael Saylor's MicroStrategy has expanded its Bitcoin holdings for the tenth consecutive week.

During the week ending January 12, the company acquired an additional 2,530 BTC for $243 million, raising its total holdings to 450,000 BTC. The latest purchase was made at an average price of $95,972 per bitcoin, bringing the company’s overall average purchase price to $62,691.