Bitcoin experienced a significant drop, falling below the $90,000 mark shortly after news broke of U.S. military strikes in Venezuela.
The recent explosions in Caracas serve as a stark reminder of how swiftly geopolitical events can impact cryptocurrency markets.
Just when Bitcoin seemed to be on the mend, global risk factors took center stage once more.
The recovery of Bitcoin has unfortunately encountered yet another setback.
As the market was attempting to gain traction above $90,000, reports detailing explosions in Venezuela caused Bitcoin’s value to plummet sharply. Within an hour, BTC dropped from its recent high near $91,000 down to below $90,000—demonstrating just how quickly geopolitical news can influence crypto prices.
Explosions Reported in Caracas
Early Saturday morning at around 2:00 AM (0600 GMT), loud blasts were reported throughout Caracas.
Multiple secondary explosions observed while flames and smoke rise from the Port of Caracas in Venezuela. pic.twitter.com/R8OJ4CsdHO
— OSINTdefender (@sentdefender) January 3, 2026
This incident coincides with escalating tensions between the United States and Venezuela. President Donald Trump has dispatched a naval task force to the Caribbean and has not ruled out ground operations. Earlier this week, he claimed that U.S. forces had “hit and destroyed a docking area” associated with alleged Venezuelan drug trafficking vessels.
No official confirmation links these explosions directly to U.S. actions; however, BBC reported that the Trump administration was aware of what transpired. CNN noted that several areas within Caracas experienced power outages while journalists reported hearing aircraft overhead.
Bitcoin Drops Below $90K
The cryptocurrency market reacted swiftly following these developments.
After trading around $90,500 post-peak at approximately $91,000 earlier on Saturday morning, Bitcoin fell by over $1,000 within an hour as news broke about the situation in Venezuela. The price settled around $89,750—erasing gains made just one day prior and halting any ongoing recovery efforts.
This reaction underscores a recurring trend; during times of geopolitical unrest or tension points worldwide,BItcoin often displays heightened volatility, behaving more like a risk-sensitive asset rather than acting as an independent hedge against such uncertainties.
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A Familiar Pattern Returns
PFrustration quickly emerged across various crypto communities. ....
<Pash Crypto expressed their frustration by stating,“The US is attacking Venezuela right when crypto is trying for recovery! I’m so tired of this!” . </P.
<PCrypto Rover shared similar feelings by saying, “We were finally making progress! This is beyond frustrating.”.
Bitcoin falls under$90000 due to US airstrikes hittingVenezuela.
We were finally startingto recover.
Thisis incrediblyfrustrating.pic.twitter.com/OHdV2zW7Nv
</P
—CryptoRover(@cryptorover)January3 ,2026
A FAMILIAR PATTERN RETURNS H22 >
<PThroughout2025,Bitcoin consistently respondedto bothgeopoliticalandmacroeconomic events—fromtheUSgovernmentshutdownstoUS-China tradetensionsandconflictsin themiddleeast .
<PNow ,justthree daysinto2026,Bitcoin seemsagainrespondingto globalrisk .
<PHOW much furtherwillBitcoindrop remainsuncertain.