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Sudden geopolitical developments in Venezuela resulted in a strong cryptocurrency market rally of over $100 billion, not because investors were flocking to “safe havens,” but because the timing made the cryptocurrency market effectively the only market in the world that could reprice risk while traditional markets were closed.
As a result, Bitcoin’s price jumped above $90,000, with short position liquidations adding more than $130 million in the first 12 hours, suggesting that the digital currency may act as an always-on liquidity layer in times of crisis rather than just a speculative asset.
The explanation for this interaction is inseparable from the peculiarities of Venezuela itself, which has relied on digital currencies out of necessity for years due to hyperinflation and sanctions.
Stablecoins such as USDT are widely used to protect purchasing power and receive remittances, with reports suggesting state-linked entities have used them in oil-related settlements, reflecting the depth of cryptocurrencies’ integration into local economies.
The most important message for traditional brokers is that round-the-clock trading is no longer a competitive advantage, but an operational and administrative requirement to manage liquidity and risk.
Major events can occur over the weekend and completely repricing the market outside of business hours, forcing banks and brokers to update their risk models and infrastructure to handle the rapid and huge flows that come when cryptocurrencies become the market of the moment in times of crisis.
Also read:
Four factors that could impact the cryptocurrency market this week
Digital currency market adds $200 billion, Bitcoin hits $93,000
