Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Oil and natural gas prices fell today as markets reacted to the US attack on Venezuela and the arrest of President Nicolas Maduro.
As debates grow over the future of Venezuela’s massive oil reserves, market analysts believe that Bitcoin (BTC) may emerge as a beneficiary.
Sponsored
Sponsored
Why Trump’s move in Venezuela is putting pressure on oil and gas prices
On January 3, Announce US President Donald Trump said the country has carried out a large-scale military operation in Venezuela. as well as He was arrested Venezuelan President Nicolas Maduro and his wife Celia Flores.
Financial markets responded to the development as open trading today, with energy prices falling. Kobeci’s message indicated that natural gas fell by about 6% in 15 minutes After opening the futures trade. In addition, the price of oil fell below $57 per barrel, close to the levels last seen in 2021.
Typically, major geopolitical escalations involving oil-producing countries have led to higher energy prices. However, this time, the markets seem to be reacting differently. This change is related to expectations In relation to Trump’s plans Venezuela’s huge oil and gas reserves.
“We have to have the big American oil companies, the biggest in the world, come in, spend billions of dollars, repair the very damaged infrastructure and start making money for the country.”
For context, Venezuela has the largest proven oil reserves in the world. It represents about 20% of global reserves.
Beyond oil, Venezuela also has an estimated 200 trillion cubic feet of natural gas reserves, many of which remain unexplored.
Sponsored
Sponsored
“US control of Venezuela is expected to bring more supplies of oil and natural gas to the market. The market knows that this week’s events will eventually reverse the supply disruption. The market is never wrong.” published message Kobesi.
The liquidity cycle hypothesis
U.S. control of Venezuela’s energy sector could lead to a further increase in supply, pushing oil and natural gas prices even lower. But how? This scenario could benefit From Bitcoin?
Second for the analyst Market expert Eric Fung, in such environments, traders and private equity firms​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ should reallocate funds to alternative assets, including gold and silver. They can become digital assets Part of this recyclingwith Bitcoin and Ethereum emerging as potential beneficiaries of changing capital flows.
An analyst argues that the actions of the United States in Venezuela highlight how fiat systems are linked to state power, which could undermine confidence in the dollar. As a result, investors can turn to Bitcoin as a non-sovereign asset resistant to sequestration, increasing demand and supporting price momentum during periods of geopolitical stress.
However, critics point out that the market ignores practical barriers. The market watcher argued that Venezuelan heavy crude oil presents a theoretical supply risk, Similar to Bitcoin Mount Gox.
It exists, but markets cannot price it correctly because production is slow, uncertain and limited by infrastructure and politics. Thus, it is used more as a narrative to influence emotions rather than as a real shocker to the show.
“It is literally unknown how and when the market will reach a much higher daily production rate, since the construction of efficient systems takes time. It is more likely to be used as a manipulative tool than an actual supply / demand balancer. Also, the market cannot correctly price if the United States can maintain this or for how long.” He indicated Author.
Apart from the impact of oil prices, BeInCrypto also reported that the alleged holdings of Bitcoin are in Venezuela If it were taken by the United States, it could create a long-term supply shock that favors an increase in the price of Bitcoin.
