- Bitcoin surged past its resistance to over $91K amid the capture and extradition of Venezuelan President Maduro to the US.
- Venezuela has been a hotbed for crypto activity over the years due to its persistent hyperinflation.
US President Donald Trump’s attack on Venezuelan soil and subsequent capture of Venezuelan President Nicolas Maduro have ignited a wildfire of debate. Many cheered the move to depose the dictator, who has been ruling the Southern American nation since 2013, while others vehemently criticized the US President for undermining the country’s sovereignty and international laws, while bypassing the US Congress in an act of war.
However, the cryptocurrency market, led by Bitcoin (BTC), has significantly rallied in the aftermath of the international incident. On Sunday morning (UTC), the premier digital asset recovered to more than $91K as authorities took Maduro to the US to face the narco-terrorism charges first brought against him in 2020 at the Southern District of New York. The newly unsealed indictment, issued on Saturday, notably included his wife, Cilia Flores, as a defendant.
Bitcoin Overcomes $90K Resistance
Bitcoin has struggled chiefly under the $90K resistance in the second half of December 2025. The developments on Sunday propelled it past that line, igniting hopes for additional pumps as several lawmakers have sparked hope for the bipartisan passage of the pending Digital Asset Market Structure Legislation this year, with its markup scheduled for mid-January 2026.
BTC’s considerable rebound also pushed the crypto market’s overall valuation from under $3 trillion at the New Year celebration to around $3.12 trillion on Sunday. Analysts expect that the tension in Venezuela is not yet over, though. They warned that the political vacuum the US created there could trigger short-term market volatility.
Venezuela: A Vital Market for Crypto
Economists widely considered the Venezuelan economy to be the worst performer in South America. This is despite the nation having one of the world’s largest crude oil stockpiles.
Although Venezuela has been experiencing double-digit inflation even before the Maduro regime, the numbers spiked to triple digits during his term. According to International Monetary Fund (IMF) data, the country logged an annual inflation of 269.9% in 2025.
The persistent hyperinflation led to increased crypto adoption in Venezuela. Last September, the country ranked 18th at Chainalysis’ 2025 Global Crypto Adoption Index Top 20 due to the continuous devaluation of its local currency, the Venezuelan bolivar.
The ensuing capital flight led many consumers and merchants to prefer transacting in stablecoins like Tether’s USDT, making it their de facto replacement for the bolivar to preserve the value of their wealth.
The US military action in Venezuela fueled another layer of safe-haven demand for crypto, driving Bitcoin past $91K by Sunday.
Disclaimer: The analysis and commentary featured in this article are only for informational purposes. They do not constitute financial advice or a product recommendation from the author or the Blockzeit team.
