Stocks Continue to Outperform Bitcoin Despite Trump's Actions in Venezuela

Equity markets have shown resilience in the wake of President Trump’s military intervention in Venezuela. On Monday, the S&P 500 and Nasdaq recorded gains, with energy stocks rising in response to the potential reopening of Venezuelan oil markets. Investors appear to be focusing on the long-term benefits of U.S. companies regaining access to oil reserves rather than short-term geopolitical risks.

Bitcoin has struggled to maintain momentum amid this backdrop. Despite a rebound in institutional buying interest at the start of 2026, the cryptocurrency remains below key resistance levels. The MSCI decision to retain crypto-focused companies like $MSTR in its indexes has reduced concerns about forced selling, but Bitcoin has yet to break decisively above $94,500.

Analysts continue to maintain a positive stance on key stocks, especially in the online gaming and biotech sectors. Citizens reiterated its Market Outperform rating on Flutter Entertainment and DraftKings, citing strong performance in the legal sports betting market.

Why Are Stocks Outperforming Bitcoin Right Now?

The current market environment favors traditional equities over cryptocurrencies. Institutional capital is flowing into risk assets, driven in part by the start-of-year rebalancing of portfolios. The S&P 500’s recent record highs and the energy sector’s rebound have created a backdrop that is more favorable for stocks than Bitcoin, which remains a high-beta asset.

Citizens also cited strong cash balances and a solid development pipeline as key drivers for continued optimism in the biotech sector. BeOne Medicines, for example, has received robust Phase 3 trial results for its gastric cancer drug and is on track for $3.8 billion in revenue in 2025.

How Is the Oil Sector Responding to U.S. Moves in Venezuela?

The energy sector has been one of the biggest beneficiaries of the geopolitical developments in Venezuela. The S&P 500 energy index hit a nearly year-high, with Chevron rising more than 5% on Monday. Investors are betting that U.S. firms will be able to increase production in the country, which has the world’s largest proven oil reserves.

Chevron is currently the only U.S. major operating in Venezuela, but companies like Exxon and ConocoPhillips could return if infrastructure and regulatory conditions improve. The Trump administration has suggested that U.S. taxpayers might reimburse oil firms for investments made in the country.

What Are Analysts Watching for the Next Move in Stocks and Crypto?

Analysts are closely monitoring key resistance levels for Bitcoin as well as broader macroeconomic trends. The cryptocurrency is currently consolidating between $85,000 and $94,500, with a clean break above $94,500 potentially signaling renewed bullish momentum.

On the equity side, investors are watching for further expansion in the prediction markets, particularly with DraftKings’ new app launch. Mizuho and Benchmark have both reiterated Outperform ratings, citing the company’s strategic move to expand its market share.

The coming months will also be critical for BeOne Medicines as it presents full data from its Phase 3 trial at the ASCO-GI conference in January. Positive outcomes could validate the firm’s strong revenue projections and justify the current market outperformance.

Whitestone REIT is also a focus for investors, with the company on track to achieve $15.20 per share in a recent acquisition proposal. Analysts see the stock as undervalued relative to its peers and believe the REIT has room for growth in the Sunbelt markets.

The interplay between geopolitical developments and market sentiment will remain a key theme in 2026. For now, equities are holding the upper hand over cryptocurrencies as investors bet on stability in the traditional asset class.