Natural gas and oil prices have been under pressure since the Donald Trump administration captured Venezuela’s President Nicolas Maduro over the weekend. At the same time, Bitcoin’s price has risen, reaching $93,565 as of this writing, according to data from CoinGecko. The key question on every crypto investor’s mind right now is whether Maduro’s arrest is the catalyst that propels Bitcoin above $100,000 for the first time since mid-November. Here is what analysts think.
Trump’s Attack on Venezuela and Its Effects on Gas and Oil Prices
On Saturday, Trump revealed that his government had executed a military operation in a South American country, Venezuela, capturing its president and his wife. Since the news, the price of natural gas has declined 6%, with oil dropping below $57 per barrel, according to The Kobeissi Letter’s recent report.
Why Oil and Gas Prices Are Declining Instead of Rising
Interestingly, previous geopolitical escalations have led to increased oil and gas prices, but this time, the story is different. Market analyst on X, Bull Theory, claims that the shift is likely due to Trump’s plans to take over Venezuela’s oil reserves, estimated to be worth $17 trillion.
Alongside oil, Venezuela boasts vast natural gas reserves worth trillions of dollars, which the United States also seeks to explore. Bull Theory argues that if the US brings more natural gas and oil to the market, the supply is likely to exceed demand, resulting in lower prices for these products. Could such a scenario favor Bitcoin?
How Bitcoin Benefits From Lower Prices of Oil and Natural Gas
Market expert Eric Fund is optimistic that Silver, Gold, and Bitcoin will be the beneficiaries of lower oil and natural gas prices, arguing that private equity companies may reallocate money into these assets to preserve their capital as the dollar weakens due to growing geopolitical tensions.
Meanwhile, several reputable media houses, including BeInCrypto, have reported that Venezuela is allegedly holding over 600,000 BTC worth over $60 billion. If the United States seizes this massive Bitcoin holding and commits not to sell, it could result in a limited supply, allowing the asset to appreciate in value with minimal selling pressure.
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