Bitcoin Tops $93,000 as Markets Digest US Operations in Venezuela

Bitcoin price surged past $93,000 on January 4, 2026, marking a sharp reversal after weeks of consolidation. The rise comes amid heightened geopolitical tensions involving US operations in Venezuela and related regional developments. Analysts suggest the move may reflect broader risk sentiment shifts and institutional inflows into digital assets.

The US government’s recent actions against Venezuela’s oil exports, including sanctions on Chinese-linked companies and a naval chase of a sanctioned oil tanker, have added to regional uncertainty. According to reports, Venezuela announced the release of 88 more political prisoners following protests after the 2024 election, a move seen as a response to US diplomatic pressure.

Bitcoin’s surge has coincided with strong inflows into US-based crypto ETFs. On the first trading day of 2026, spot Bitcoin and Ether ETFs recorded a combined net inflow of $646 million, indicating renewed institutional and retail investor interest in the asset class.

The price rally follows a broader easing in year-end liquidity conditions and a shift in risk appetite among global investors. The New York Fed’s record liquidity injections via the Standing Repo Facility and reverse repo programs have contributed to a mild risk-on tone, supporting risk assets like Bitcoin.

In addition, geopolitical uncertainty has created a backdrop in which safe-haven and alternative assets may gain traction. The US military’s escalation in the Caribbean and related diplomatic tensions in Venezuela have heightened volatility in oil and other markets. Traders are also watching OPEC+ policy decisions as they balance the risk of oversupply with geopolitical events.

The sharp move in Bitcoin has also coincided with a positive performance in Ethereum and altcoins. Ethereum ETFs saw $174 million in net inflows on the first trading day of 2026, with smaller-cap assets like XRP and Solana also showing strong inflows.

Oil prices rose in early 2026 amid these tensions. Brent crude climbed above $61 per barrel as traders anticipated OPEC+ meeting outcomes and assessed the geopolitical impact of the Venezuela situation. Meanwhile, the International Energy Agency has warned of a potential supply glut of 3.8 million barrels per day in 2026.

Analysts are closely monitoring technical and institutional indicators to gauge Bitcoin’s next move. The asset has entered deeply oversold territory on the RSI, levels historically preceding sharp reversals. If Bitcoin breaks below the $85,000 support level, it could test the $82,784 S1 Pivot Point.

Meanwhile, ETF outflows have continued to decline, with spot Bitcoin ETFs recording only mild net outflows in early January after a three-week period of outflows in late December. Easing liquidity conditions have helped stabilize risk sentiment and keep Bitcoin in a narrow trading range.

Institutional demand for Bitcoin has softened but remains positive. The Federal Reserve’s ongoing $40 billion monthly purchases of Treasury bills are expected to ease short-term borrowing costs and support risk assets like crypto, at least in the near term according to analysts.