2 months ago
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The United States is allegedly moving to freeze and take control of Bitcoin held by Venezuela after the capture of Nicolás Maduro, who is now facing narco-terrorism charges in a federal court in New York.
Crypto prices began to rally right after the news broke, as Cryptopolitan earlier reported that Bitcoin led the gains to over $94,000 after months of slow trading, as markets reacted to the political fallout tied to Venezuela and energy supply.
“All of our oil companies are ready and willing to make big investments in Venezuela that will rebuild their oil infrastructure, which was destroyed by the illegitimate Maduro regime,” White House spokeswoman Taylor Rogers earlier said.
Crypto prices rally a bit as oil supply expectations change
According to CNBC, Mackenzie Sagalos, crypto markets reporter, said traders are betting that Maduro’s capture could unlock oil supply held back for years. Venezuela sits on an estimated $17 trillion in untapped crude. If oil starts flowing again, supply rises, energy prices fall, and inflation pressure eases.
Technically, Bitcoin reclaimed its 50-day moving average, a level traders track for short-term momentum. The price jump triggered short liquidations over the weekend, wiping out bearish bets. The setup differed from last summer’s Iran strikes, when fears of a Strait of Hormuz shutdown sent crypto prices lower.
“This time though, the prospect of more supply on the horizon is being read as disinflationary and risk on. Venezuela has been an early adopter of crypto as a currency and use of it,” said Mackenzie.
Venezuela has a long crypto history driven by its astonishing economic collapse, as inflation in the bolivar pushed people toward crypto as far back as 2017. Households mined Bitcoin and Ethereum at home to secure steady cash flow.
Data from Bitcoin Treasuries shows that the Venezuelan government with holding 240 Bitcoin, worth about $22 million, but then a Whale Hunt report denied that on Monday and estimated a possible shadow reserve of up to 600,000 Bitcoin, worth like $60 billion at current prices and nearly 3% of Bitcoin’s circulating supply.
Meanwhile, US Energy Secretary Chris Wright is scheduled attend an energy conference hosted by Goldman Sachs in Miami this week. Executives from Chevron and ConocoPhillips are also expected to attend.
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