A recent analysis featured on CNBC highlights that the US military action targeting Venezuela might have notable ripple effects on the cryptocurrency sector.
The report emphasized that Venezuela’s persistent high inflation over the last ten years has pushed both citizens and government entities to increasingly rely on digital currencies.
Experts interviewed by CNBC explained that many Venezuelans have resorted to mining Bitcoin and Ethereum at home as a safeguard against their rapidly devaluing national currency. For numerous individuals, cryptocurrencies serve as a reliable income source and a store of value. Intriguingly, there are claims suggesting that the Venezuelan government itself may be leveraging crypto assets to bypass international sanctions.
According to multiple accounts mentioned in the broadcast, Venezuela is reportedly converting proceeds from oil sales into Bitcoin through Tether (USDT). This situation has sparked considerable speculation about whether the US might seize these Bitcoin holdings, which could significantly influence market dynamics.
One commentary from CNBC proposed that if the US were to confiscate these Bitcoin reserves but refrain from selling them immediately, it could create bullish momentum for Bitcoin prices. Holding a substantial amount of Bitcoin off-market would reduce available supply, potentially driving prices upward. Analysts also pointed out how crypto markets often react swiftly based on expectations and sentiment surrounding such developments.
The analysis further suggested this effect wouldn’t be confined solely to Bitcoin. Using an analogy akin to “a rising tide lifts all boats,” it was argued that other cryptocurrencies like Ethereum, Solana, and various altcoins might also benefit from this trend. Additionally, XRP’s recent robust performance was highlighted as evidence of growing risk tolerance among investors.
Please note: This content does not constitute investment advice.