Bitcoin’s recovery has unfortunately hit another wall.
Just as the market was trying to build momentum above $90,000, reports of explosions in Venezuela sent Bitcoin sharply lower. Within an hour, BTC fell from its recent peak near $91,000 to below $90,000, once again showing how fast geopolitical headlines can shake crypto markets.
Early Saturday morning, loud explosions were heard across Caracas around 2:00 am (0600 GMT).
The timing comes amid rising tensions between the U.S. and Venezuela. U.S. President Donald Trump has deployed a navy task force to the Caribbean and has openly raised the possibility of ground strikes. Earlier this week, Trump said the U.S. had “hit and destroyed a docking area” used by alleged Venezuelan drug boats.
While there is still no official confirmation linking the Caracas explosions to U.S. action, BBC reported that the Trump administration was aware of the incident. CNN added that several parts of the city were left without power, and journalists reported hearing aircraft sounds.
The crypto market reacted immediately.
Bitcoin, which was trading around $90,500 after touching $91,000, dropped by more than $1,000 in less than an hour after the reports surfaced. The price has slid to around $89,750, wiping out gains from the previous day and stopping the ongoing recovery attempt.
The move highlights a familiar trend. During periods of geopolitical tension, Bitcoin has shown increased volatility, often reacting like a risk-sensitive asset rather than a standalone hedge.
Frustration quickly surfaced across the crypto community.
Ash Crypto posted, “US is attacking Venezuela. And it’s happening exactly when crypto is trying to recover. F*cking tired of this shit now.”
Crypto Rover echoed the sentiment, saying, “We were finally starting to recover. This is incredibly frustrating.”
Throughout 2025, Bitcoin repeatedly reacted to geopolitical and macro events – from the U.S. government shutdown to U.S.-China trade tensions and Middle East conflicts.
Now, just three days into 2026, Bitcoin appears to be responding to global risk once again.
How much further Bitcoin falls remains to be seen.
The reports caused a fast sell-off, pushing BTC down over $1,000 in under an hour as traders reacted to rising global uncertainty.
Not consistently. Recent events show Bitcoin often trades like a risk asset, becoming more volatile during wars, tensions, or macro shocks.
Short-term moves depend on headlines and risk sentiment. Continued geopolitical stress could keep volatility elevated in the near term.
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