The United States is reportedly moving to freeze and take control of Bitcoin held by Venezuela following the arrest of President Nicolás Maduro, who is now facing narco-terrorism charges in a federal court in New York.
Shortly after the news broke, the cryptocurrency market reacted positively. Bitcoin led the rally, surging past $94,000 after months of sluggish trading, as investors reassessed the geopolitical implications tied to Venezuela and the global energy supply.
Earlier, White House spokeswoman Taylor Rogers stated that U.S. oil companies are ready to return to Venezuela with large-scale investments to help rebuild the country’s oil infrastructure, which Washington says was severely damaged under the “illegitimate” Maduro regime.
Crypto prices rise as oil supply expectations shift
According to CNBC, Mackenzie Sagalos, a crypto markets reporter, noted that traders are betting Maduro’s arrest could unlock oil supply that has been constrained for years. Venezuela sits on an estimated $17 trillion worth of untapped crude oil reserves.
If Venezuelan oil re-enters global markets:
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Energy supply would increase
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Oil prices could decline
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Global inflationary pressure may ease
These dynamics are being viewed as supportive for risk assets, including Bitcoin and the broader crypto market.
From a technical standpoint, Bitcoin has reclaimed its 50-day moving average, a key level traders monitor for short-term momentum. The sharp move higher triggered short liquidations over the weekend, wiping out a wave of bearish bets.
This reaction contrasts with last summer’s Iran strikes, when fears of a shutdown of the Strait of Hormuz pushed crypto prices lower.
“This time, the prospect of increased supply is being interpreted as disinflationary and risk-on,” Sagalos said. “Venezuela has also been an early adopter of crypto as a currency and means of exchange.”
Venezuela’s long-standing relationship with crypto
Venezuela has long been regarded as one of the earliest adopters of cryptocurrency, driven by a devastating economic collapse. As early as 2017, runaway inflation in the bolívar forced citizens to turn to Bitcoin and Ethereum as alternative stores of value and payment tools.
Many households even mined Bitcoin and Ethereum at home to secure a more stable cash flow amid the country’s economic turmoil.
Data from Bitcoin Treasuries suggests the Venezuelan government officially held around 240 BTC, worth roughly $22 million. However, a recent Whale Hunt report disputed that figure, estimating Venezuela may possess a shadow reserve of up to 600,000 BTC, valued at nearly $60 billion, or close to 3% of Bitcoin’s circulating supply at current prices.
Meanwhile, U.S. Energy Secretary Chris Wright is scheduled to attend an energy conference hosted by Goldman Sachs in Miami later this week. Executives from Chevron and ConocoPhillips are also expected to be present, fueling speculation about potential shifts in U.S. energy policy toward Venezuela.
