Key Highlights
- Bitcoin surged past $90,000 following the incident but showed no signs of panic selling.
- Traditional stock markets reacted mildly, with small gains in futures and energy stocks.
- Venezuela’s heavy crypto use has made digital assets the main way to handle risk while stock markets were closed.
The U.S. military operation in Venezuela over the weekend, which allegedly led to the capture of President Nicolás Maduro, has put global markets on alert. Crypto investors and traders have responded cautiously, watching out for how the event will affect both.
The event occurred at 6:01 UTC on early Saturday morning, when most stock exchanges were closed. As a result, its effects were first seen in crypto markets.
Bitcoin surges over $90K, Altcoins also react
Bitcoin (BTC) prices reacted first with a surge past $90,000, while short liquidations in crypto exceeded $130 million in the first 12 hours after news broke. According to a report on Cryptoquant, on-chain data, like Exchange Netflow, shows that Bitcoin is leaving exchanges rather than moving in, which suggests people are cautious, but they are not selling in panic.
At the time of writing, Bitcoin is trading for $92,462, up 1.91% in the last 24 hours, with its trading activity up 33% to $35 billion in volume, according to CoinMarketCap.
Ethereum (ETH), the second-largest cryptocurrency, also saw a push due to the event. The ETH price has surged past its $3,000 key level and currently trades for $3,180. Over the last 24 hours, the token has seen about 68% in trading activity, reaching about $21.96 billion in volume. Other major altcoins, like XRP, BNB, and Solana, are up an average of 10% in the last seven days.
Stock markets show little change
Stock markets responded calmly to the news. S&P 500 futures rose 0.3%, Nasdaq 100 futures increased 0.8%, and Dow Jones Industrial Average futures were up 0.1%. Energy stocks led modest gains, with Chevron climbing more than 7% and Exxon Mobil over 4%, as investors expected Venezuela’s oil reserves could benefit these companies, according to CNBC.
Analysts said markets do not expect a larger conflict. Jay Woods, chief market strategist at Freedom Capital Markets, stated, “While volatility is expected as the Venezuelan headlines will dominate the landscape, the overall market seems relatively unfazed by events so far.”
Venezuela’s role in the crypto market
Venezuela’s long-term reliance on cryptocurrency helps explain the unusual market response. Years of hyperinflation and U.S. sanctions have pushed citizens and companies, including state-linked oil company PDVSA, to adopt digital currencies for payments and money transfers.
Stablecoins like USDT are widely used to maintain purchasing power and receive money from abroad. As a result, crypto markets acted as a 24/7 place for people to move money while stock markets were closed. Brokers and banks had to handle a lot of extra trades with an increase in trading volume over a short period, which has also led to the need for round-the-clock risk management.
Experts think Bitcoin will remain strong. Michaël Van de Poppe said, “The likelihood of more negativity on the markets from that single event [is] relatively slim. I would assume we’ll see Bitcoin north of $90,000 [in the] coming week.” Analysts also noted that big geopolitical events usually do not have a long-term effect on stock markets. While oil and equities may change a little, the focus is on factors like AI, earnings growth, and monetary policy.
Also Read: Polymarket Trader Makes $400K From Venezuela’s Maduro Capture
