Bitcoin climbed toward $93,000 as Trump warned Colombia and Mexico after Venezuela events, with geopolitics driving demand.
The start of the new year has brought a new wave of volatility to international markets.
BTC has climbed on Monday, as investors reacted to new statements from the White House.
President Donald Trump noted that the United States might pursue tougher actions against Colombia and Mexico.
These comments came after a high-stakes military operation in Venezuela that resulted in the capture of its president, Nicolás Maduro.
Geopolitical Trends Drive the Bitcoin Price Higher
Market observers noted a clear link between the rising Bitcoin price and the latest headlines from Air Force One.
Trump spoke to reporters and criticised Colombia for its role in cocaine trafficking.
He described the nation as “very sick” and led by a “sick man.” When asked about military involvement, he stated that such an operation “sounds good” to him.
These words sent ripples through traditional and crypto asset markets alike.
Bitcoin rose over 3% from $89,990 to touch the $93,000 mark and analysts believe the asset is currently behaving more like a safe haven than a speculative tech stock.
While previous conflicts often triggered market panic, the nature of the Venezuela operation kept uncertainty low.
Trump also turned his attention to Mexico. Despite having a friendly rapport with President Claudia Sheinbaum, he warned that “something is going to have to be done” regarding cartels.
This focus on regional security has prompted traders to hedge their bets. Gold and silver also saw gains, but Bitcoin led the charge in terms of percentage growth.
Institutional Inflows Support the Bitcoin Price Rally
The recent jump in the Bitcoin price is not just due to retail speculation.
Large financial institutions are also pouring money into spot Bitcoin ETFs because on January 2, these funds saw $471 million in total inflows.
This was the largest single-day jump since mid-November, with BlackRock’s IBIT fund leading the group and attracting $324 million in just one week.
Other digital assets showed mixed results during this period. While Bitcoin soared, Ethereum ETFs experienced $161 million in weekly outflows. On the other hand, Solana and XRP ETFs saw modest gains of $10 million and $43 million, respectively.
This divergence shows that investors are specifically choosing Bitcoin as their hedge against political chaos.
In addition, the total crypto market cap added roughly $90 billion in 24 hours. Traders are now watching the $94,000 level and whether BTC can hold above this point.
Related Reading: Bitcoin Likely to Stay Above $90K Following Venezuela Military Strike
Energy Stocks and Oil Markets React to the News
While BTC moved higher, the oil market saw a different kind of volatility. US crude prices slipped toward $57 a barrel, and this drop occurred despite the news that US oil companies would soon take control of Venezuelan infrastructure.
Trump confirmed that firms like Chevron, Valero and ConocoPhillips would help rebuild the sector.
Venezuela also holds the largest proven oil reserves on Earth and Trump noted that the country has “trillions in oil”.
He also vowed to reclaim American-built infrastructure, insisting that the US government would not invest its own cash. Instead, private companies will run the operations.
This news caused Chevron stock to jump by 11%, adding $35 billion to its market cap.
This energy battle has deep geopolitical roots.
The US, by tapping into Venezuelan heavy crude, can reduce Russia’s leverage over global oil prices. It also gives Washington control over the supply chains that China relies on for its annual imports.
Source: https://www.livebitcoinnews.com/bitcoin-targets-93k-as-trump-eyes-colombia-after-venezuela-invasion/
