Bitcoin Plunges Under $90,000 Amid Escalating US Military Action in Venezuela
Geopolitical shockwaves hit digital gold as Bitcoin's price craters.
The Flight to Safety—Or Is It?
Traditional markets often treat global conflict as a signal to buy bonds and dump risk. Crypto's playing by a different handbook now. When headlines scream military escalation, Bitcoin's price action tells a more nuanced story—one of instant global capital reassessment.
Beyond the Headline Number
A drop below $90,000 isn't just a technical breakdown. It's a liquidity stress test. The move exposes how fast institutional flows can reverse when macro fears override narrative. The usual 'digital haven' talk gets quiet real quick when leveraged positions start getting liquidated.
The Real-Time Stress Test
Forget quarterly reports. This is live-fire due diligence on crypto's correlation thesis. Every trader, fund, and algorithm is watching to see if this dip gets bought or if it's the start of a deeper risk-off unwind. The network's handling the volume, but the sentiment's cracked.
So much for 'decoupling from traditional finance'—sometimes the old panic playbook still works, just with fancier technology. A cynical take? The only thing moving faster than missiles might be the stop-loss orders on some hedge fund's Bitcoin ETF position.
Venezuela’s president captured: What it means for crypto
Just two hours after news about the Venezuelan air strikes broke, Bitcoin slipped downwards to $89,571, from nearly $91,000 the previous day. Several market analysts believe any form of war in the West, the purported “hotbed” for crypto adoption, is extremely bearish for digital assets just three days into the new year.
“Oh, is bitcoin back over 90K? It would be a real shame if someone… BOMBED VENEZUELA. Notice that all of the bullshit happens on Friday nights because Trump wants stock markets to have 48 hours to absorb the news,” Bitcoin investor Lark Davis surmised.
According to market observer Ether Rawl, during Israel’s attack on Gaza in October 2023, Bitcoin dropped approximately 5% in the days following. He suggested the Venezuela strikes could push the king coin below the weekly 100 EMA, slightly under $86,000, and it is still unknown if a recovery will materialize.
Trading group Money APE sees the US-Venezuela tussle as a war on Bitcoin and crypto, and is adamant President Trump has chosen to take custody of Maduro now because “he is manipulating the market.”
BREAKING:
🇺🇸 US is attacking Venezuela.
And it's happening exactly when crypto is trying to recover.
F*cking tired of this shit now.
— Ash Crypto (@AshCrypto) January 3, 2026
The US dollar fell to around 98.2 on the first trading day of 2026, after counting a 9% annual loss in 2025. A fall in the greenback’s value would mean the crypto market is ready for a comeback under normal conditions, but with the war on Venezuela in play, Bitcoin bulls might not have enough in their tank to shake off end-2025’s bearish effects.
“I am still long until 94k at least. The only problem I see is the war between Trump and Venezuela. If the conflict escalates, we’re going to have choppy price action,” economist Market Hokkage predicts.
Political backlash from Liberals in the United States
Before today’s events, congressional Democrats and some Republicans had attempted to limit Trump’s military options in Venezuela. They had been seeking to take away the POTUS’ powers through a congressional plea and forced votes in both the House and Senate, all of which were unsuccessful.
Democratic Senator Ruben Gallego of Arizona, a US Marine Corps veteran and part of the brigade against President Trump, wrote on X earlier today that the strikes are “illegal” and “the second unjustified war in his lifetime.”
According to TRM Labs’ Country Crypto Adoption Index, Venezuela ROSE to 11th place globally in 2025, up from 14th in 2024, with just 27 million and a per capita GDP of $3,100. Venezuelans are using cryptocurrencies to preserve savings and to shield themselves from an unstable, inflation-ridden economy.
The Trump critics propounded that airstrikes could stifle a growing crypto economy and destroy its oil economy that is already entangled with USDT.
“If the United States succeeds in imposing control over Venezuela, and by extension over the world’s largest proven oil reserves, it will mark a major shift in global power. What happens in Venezuela will not stay in Latin America. It will shape the limits of American power, and the direction of geopolitical confrontation far beyond Caracas,” said Iranian journalist Ibrahim Majed.
Still, trading veteran Ted Pillows is asking the community “not to panic,” advising them to “reduce their leverage positions and protect their capital.”>
Still, trading veteran Ted Pillows is asking the community “not to panic,” advising them to “reduce their leverage positions and protect their capital.”ect their capital.”
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