Bitcoin Tops $91,000 as U.S. Action on Venezuela Sparks Crypto Market Gains

Bitcoin surpassed $91,000 for the first time in early January 2026 as geopolitical tensions over the U.S. military action in Venezuela prompted a surge in risk appetite among crypto traders. The move came amid a shift in market sentiment, with traders reacting to news that U.S. forces had captured Venezuelan President Nicolás Maduro and his wife. The sudden development sent ripples through global markets, with crypto assets seeing increased buying activity.

Ethereum and other altcoins also benefited from the move. Ether rose to around $3,142, up nearly 1% in 24 hours, while Dogecoin outperformed Bitcoin with a 3% gain. Solana, XRP, and Cardano also posted modest gains, supported by a wave of short-covering in futures markets.

Liquidation data showed that over $180 million in crypto futures positions were unwound in the 24 hours leading into January 4. The majority of liquidations were on the short side, with $133 million wiped out compared to $47 million in longs. This suggests traders had been positioned for a pullback but were forced to cover shorts as prices pushed higher.

Why Did This Happen?

The sudden U.S. military action in Venezuela created a major shift in geopolitical risk for investors. President Donald Trump announced the operation on Truth Social, claiming Maduro and his wife had been captured and removed from the country. This led to immediate uncertainty in global markets, with Venezuela's Supreme Court granting Vice President Delcy Rodríguez acting presidential powers.

Venezuela has long been a focal point for U.S. sanctions and geopolitical pressure. The country has faced hyperinflation, economic collapse, and a growing reliance on digital assets to bypass financial restrictions. The U.S. has previously accused the Maduro regime of enabling drug trafficking and sanction evasion through crypto channels.

How Did Markets React?

Bitcoin initially dipped by about 0.5% on the first reports of the military operation in Venezuela. However, the decline was short-lived, and prices quickly rebounded to $90,000 within hours. The resilience of Bitcoin highlighted its growing role as a hedge against geopolitical volatility according to market analysis.

The broader crypto market also responded to the news. Ethereum funds reported $174 million in inflows, with Grayscale's Ethereum Trust leading the way with $53.69 million in new capital. Alternative coins like Solana, XRP, and Dogecoin also saw gains, reflecting a broad-based risk-on sentiment according to industry reports.

What Are Analysts Watching Next?

Derivatives traders are closely monitoring Bitcoin's ability to maintain its position above $91,000. Technical analysts note that a successful breakout above key resistance levels could confirm the bullish momentum. However, a failure to hold this level could trigger a pullback toward $75,000, according to trader Heisenberg.

Analysts are also watching for further geopolitical developments in Venezuela. The U.S. has yet to detail its next steps, but Trump has indicated a focus on securing Venezuela's oil sector. Any escalation in regional instability could further impact risk sentiment and crypto prices.

In the short term, the market is likely to remain in a wait-and-see mode. While Bitcoin's current position suggests no immediate flight to safety, a sharp geopolitical escalation could quickly change that dynamic. Traders are advised to monitor both technical levels and geopolitical developments over the coming weeks according to market analysts.