Crypto traders now live in fear of what is to come next in the crypto markets, as there is rising tension between the U.S. and Venezuela. President Trump just announced that they had captured their president after an airstrike.
Crypto Market Jitters Grow Amid U.S. Venezuela Conflict
Market anxieties have surged with the revelation that a large-scale US operation is taking place in Venezuela. Investors are now afraid that the escalation of the event could lead to a sudden downturn in the crypto market. This is coming at a time when the digital assets sector was just stabilizing.
According to experts, there have been instances where recoveries in cryptocurrencies were coupled with rising levels of global tension. An analyst was quoted on social media as saying, every time Bitcoin and alts look like they’re set to turn it around, it seems like a new hotspot just comes out of nowhere.
Crypto starts pumping again.
Trump bombs Venezuela.
🥳😂
— Ted (@TedPillows) January 3, 2026
Despite these concerns, market action has been rather orderly thus far. Bitcoin remains to be trading around $89,000 with no major reaction to headlines throughout the U.S. Venezuela conflict.
There are traders who think the current trend is more psychological than structural. As per one market analyst, Bitcoin has recently closed only just above $90,000 on the CME. The short-term selling impulse appears to be driven largely by uncertainty surrounding US actions in Venezuela.
$BTC CME closed just above $90,000, this is the key level to watch.
We’re seeing some short-term selling pressure due to the ongoing US action against Venezuela, but I remain bullish in the near term.
If this situation doesn’t escalate further, I view the move as a temporary… pic.twitter.com/nZtdjEzxsF
— Crypto | Stocks | Freedom (@Wealthmanager) January 3, 2026
Additionally, according to the same market analyst, in the event that the increase in tensions does not see further escalation, then this particular market movement may temporarily hold at this pullback. In this case, a return to the $96,000 to $100,000 levels may be expected within the coming days or weeks.
There have been previous geopolitical shocks that led to sharp sell-offs in all digital assets. In June last year, the crypto market saw a sharp fall following the announcement by former President Donald Trump that the United States had conducted strikes on Iranian nuclear facilities. During that time, Bitcoin and Ethereum saw a decline of over 5% in value.
What Exactly Happened in Venezuela?
There are reports that the important areas in Caracas targeted by U.S. military helicopters early Saturday include the regions around the Fuerte Tiuna military base. Explosions and blackout incidents occurred in some parts of the capital.
STATEMENT FROM PRESIDENT DONALD J. TRUMP pic.twitter.com/nHDqtsqRFh
— Karoline Leavitt (@PressSec) January 3, 2026
Later, Trump tweeted that there had been a “large-scale strike” by the United States, and he claimed that Venezuela’s President Maduro and his wife had been arrested and removed from the country. Further information was to come at a news conference.
According to reports, there is no confirmation yet on whether President Maduro was arrested by Venezuela’s government. There was, however, evidence presented on his personal account on Facebook about assaults on different parts of the country. There was also a warning about America having unsuccessful control over their oil and mineral assets. T
he situation in Venezuela is emerging amidst increasing tensions elsewhere. Ceasefire talks between Russia and Ukraine seem to be stalled following accusations from Russia that Ukraine has carried out drone attacks close to the dwelling of Russian leader Vladimir Putin.
