Bitcoin Gains Amid Venezuela Chaos, Says Arthur Hayes

Key Highlights:

• Venezuela’s current situation could fuel Bitcoin’s (BTC) rise as per Arthur Hayes.
• Bitcoin has climbed $93,000 outperforming traditional markets.
• According to Hayes, money printing and instability favor Bitcoin.

Arthur Hayes, co-founder of BitMEX, believes that Bitcoin could surge to new heights after the latest crisis took place in Venezuela. The cryptocurrency token has already jumped to $93,000 mark, after hovering over $87,000-$88,000 range for a period of many weeks, after US forces captured President Nicolás Maduro, which created a major uncertainty in the global oil market.

This sudden geopolitical shock has investors worried about the prices of oil rising and causing economic instability worldwide. Looking at this situation, Hayes predicted that this situation could help BTC climb even more.

He says that events like this highlights the token’s role as a hedge, a kind of financial safe haven, when traditional currencies or markets are under pressure.

According to Hayes, periods of global instability and abundant liquidity usually fuel BTC rallies and that indicates why cryptocurrency is increasingly being seen as a store of value during such crises.

Crisis Background

Venezuela’s crisis got even worse after the US military intervened over suspicions that President Maduro’s government was involved in illegal crypto deals and manipulating oil. Maduro was detained, disrupting the country’s huge oil industry and sending shockwaves through global energy markets.

Despite crypto trading volumes being low, Bitcoin, Ethereum and Dogecoin prices jumped after this crisis arose which indicates a strong interest from the investors.

With the essay that was published by Hayes (named Suavemente), he highlights that in such conditions BTC starts becoming more attractive to the investors. He also pointed out that moves by the US Federal Reserve, like quietly expanding the money supply, can push Bitcoin higher.

Venezuela’s situation fits this pattern, where hyperinflation make BTC a preferred alternative to the bolivar, the crisis could speed up Bitcoin adoption around the world.

Hayes’ Bitcoin Outlook

Arthur Hayes predicts a big Bitcoin surge, with prices possibly hitting $200K by the end of 2025 and $250K in 2026. He says that even though the market faces short-term pressure from debt sell-offs, upcoming US government stimulus under President Trump could flood markets with cash, pushing BTC.

Venezuela’s crisis adds to the urgency, where fears over oil supply could push the inflation higher, encouraging central banks to print more money, something that benefits limited supply assets like BTC.

Recent price moves back this up. BTC jumped 5% in 24-hours to $93,000 and has outperformed traditional markets even as trading volumes stayed low, according to Glassnode.

Hayes points out that similar situations, when hidden government money enters markets, have fueled past BTC rallies. Ethereum and Dogecoin also climbed 4-6%, indicating smaller cryptocurrencies usually follow Bitcoin’s lead.

Market Implications

The Venezuela crisis is threatening global energy supply, with sanctions possibly stopping 500,000 barrels of oil per day. This could push oil prices, raise inflation, and weaken regular currencies, conditions that make Bitcoin attractive as “digital gold.” Hayes expects big money printing to hit in 2026-2027, which could further push crypto.

Exchanges like Binance and MEXC say BTC buying linked to Venezuela is rising, similar to 2019 when locals turned to crypto during blackouts. Trading volumes are low, down 40% from previous highs, suggesting plenty of cash is waiting to fuel the next BTC surge.

Broader Crypto Context

Hayes is not worried about Bitcoin crash. He points to a strong ETF inflows and big institutional holdings, which act as safety net. Hayes also sees Venezuela’s crisis similar to past sovereign debt problems, which usually pushes demand for Bitcoin higher.

There are risks, like stricter regulations or oil markets stabilizing, that could limit gains. But Hayes’ past predictions, including the 2021 bull run, give his outlook weight. Traders are watching the $100,000 level closely, with Venezuela acting as a wildcard.

Also Read: Arthur Hayes: Liquidity Bottomed, Bull Run Begins Now