New Delhi: The ongoing crisis in Venezuela is sending ripples through global cryptocurrency markets. On Tuesday, nearly all major cryptocurrencies saw significant gains, with Bitcoin soaring past $94,000, reaching levels not seen in almost a month. By 3 PM IST, Bitcoin was trading at $93,504, marking a gain of over 1% in the past 24 hours.
Other cryptocurrencies also witnessed sharp movements: Ethereum rose over 2%, Ripple (XRP) surged nearly 10%, and Solana gained more than 2%. However, some tokens, like Canton, which delivered nearly 50% returns over the past week, faced a 4% decline in the 24-hour period. The overall crypto market capitalization climbed over 1.5%, reaching $3.20 trillion.
Reasons Behind the Rally
Delta Exchange research analyst Ria Sehgal attributed the surge to year-start positioning by traders and geopolitical developments, particularly U.S. military actions in Venezuela. Analysts suggest these events could reduce global energy costs, positively impacting Bitcoin mining economics. Sehgal further noted that institutional participation, regulatory progress, and a growing risk appetite among investors are likely to sustain this bullish trend, potentially driving cryptocurrency prices higher into mid-January.
Weekly Performance
Over the past seven days, major cryptocurrencies have recorded substantial gains:
- Bitcoin: +6%
- Ethereum: +8%
- Ripple (XRP): +25%
- Binance Coin: +7%
- Solana: +11%
- Dogecoin: +20%
Certain altcoins have posted staggering returns over the week:
- Pepe Coin: +65%
- Render: +80%
- Bonk: +53%
- Virtuals Protocol: +60%
- Stacks and Floki: ~50% gains
The Venezuela crisis has thus acted as a catalyst for heightened volatility and bullish momentum in the cryptocurrency markets, drawing both retail and institutional investors’ attention globally.
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