On January 3, the crypto market reacted sharply as the leading cryptocurrency fell below the $90,000 mark. The cause was attributed to news of a US military operation in Venezuela and subsequent public social media statements that heightened market uncertainty.
Crypto Market Reaction to US Military Operation in Venezuela
Initially, reports surfaced that the US had conducted airstrikes on Caracas, followed by the US leader posting on social media claiming the capture and removal of Venezuela's president from the country. These events coincided with traditional financial markets being closed at the time, leaving some traders out of the market.
As a result, the BTC/USD pair came under pressure and lost some of its early New Year gains: before the drop, the price had already shown growth at the start of the year. To understand recent dynamics and the impact of late December events, see the analysis on price movement and expiration roles in expiration impact, which discusses factors influencing short-term volatility.
Bitcoin Price Movement Analysis
TradingView data showed a price reversal after reaching highs near $90,940 on Bitstamp. This indicates that the market initially tested higher levels before reacting to geopolitical news by giving back some gains.
Some analysts link the subsequent picture to the return of players from traditional markets and futures market reactions. For more on the reasons behind the recent rise and the influence of returning participants, see the article on reasons for Bitcoin's growth why Bitcoin rose, which covers general factors driving price movements this year.
Comparison of Bitcoin and Gold
A noticeable difference is seen in the behavior of the two assets: on December 26, the XAU/USD pair reached a new all-time high of $4,551 per ounce, after which gold pulled back by several percent. Meanwhile, during the New Year period, BTC/USD showed gains up to 5%.
Ultimately, gold ended 2025 as the best-performing asset, while Bitcoin, despite earlier all-time highs during the year, ranked lower in the final standings. This contrast provides context for investors to consider the roles of "safe havens" and risk assets during periods of geopolitical tension; for more on links to precious metals rallies, see the article on precious metals rally.
Expert Opinions on the Situation
Crypto analyst Lennaert Snyder commented that much will depend on whether traditional market players return next week. Such capital inflow/outflow dynamics can amplify short-term volatility and determine price direction in upcoming sessions.
Michael van de Poppe described Bitcoin's recent move as a "classic" reaction to the Venezuela news while maintaining a bullish outlook on the asset's prospects. These assessments reflect professional views based on market behavior amid sudden geopolitical events.
Why This Matters
For mining rig owners, geopolitical news is primarily important due to its impact on volatility and short-term asset pricing. Sharp price swings can affect the profitability of converting mined BTC into rubles or dollars, especially when liquidity on markets simultaneously closes or changes.
Even if events do not directly affect equipment operation, they can influence investor decisions and trading volumes, which is reflected in the price. Understanding whether the movement was caused by military operation news, political statements, or futures behavior helps make more informed decisions in asset management and mining profitability.
What to Do?
A brief practical plan for miners with one to a thousand devices includes several simple steps to help reduce operational risks during volatility.
- Assess current mining profitability considering prices and electricity costs; this will help decide whether to temporarily reduce load.
- Don't rush to sell all accumulated BTC at the first dip; consider partial profit-taking or spreading sales over time.
- Monitor liquidity and operating hours of exchanges and payment systems to avoid conversion issues during instability.
- Maintain a reserve of operational cash in case of sudden drops in electricity fees or temporary equipment maintenance expenses.
- Update information from reliable sources and cross-check market dynamics with analytics to avoid decisions based on rumors.