Bitcoin fell below $90,000 within an hour after reports of the US attack on Venezuela surfaced.
The explosion in Caracas showed once again how quickly geopolitical tensions can shake up crypto markets.
Just as Bitcoin was recovering, global risk headlines were back in the driver’s seat.
Unfortunately, Bitcoin’s recovery has hit a new wall.
Just as the market was about to rally above $90,000, Bitcoin plummeted due to reports of an explosion in Venezuela. In less than an hour, BTC has fallen from recent highs near $91,000 to below $90,000, demonstrating once again how quickly geopolitical headlines can shake up crypto markets.
Explosion reported in Caracas
A loud explosion was heard early Saturday morning. Caracas, around 2am (06:00 GMT).
Multiple secondary explosions were seen as flames and smoke emerged from Venezuela’s Caracas port. pic.twitter.com/R8OJ4CsdHO
— OSINTdefender (@sentdefender) January 3, 2026
The timing comes amid rising tensions between the United States and Venezuela. US President Donald Trump is dispatched a naval task force to the Caribbean And he openly raised the possibility of a ground attack. Earlier this week, President Trump said the U.S.Collisioned and destroyed the docking area” Used by a suspected Venezuelan drug smuggler.
There is still no official confirmation of a link between the Caracas explosion and US actions, but the BBC reported that the Trump administration was aware of the incident. CNN added: Some areas of the city remained without power.and journalists reported hearing the sound of an aircraft.
Bitcoin falls below $90,000
Cryptocurrency markets were quick to react.
Bitcoin being traded $90,500 after reaching $91,000I stopped by more than $1000 within 1 hour After the news came out. Prices fell to approx. $89,750wipes out any gains from the previous day and halts any ongoing recovery attempts.
This move highlights a common trend. During periods of geopolitical tension, Bitcoin often exhibits increased volatility and reacts more like a risk-sensitive asset than as an independent hedge.
This may be of interest to you: Bitcoin 2025 price prediction: How wrong were the crypto industry giants?
here we go again…
Discontent quickly surfaced throughout the crypto community.
Ashcrypt posted, “The US is attacking Venezuela, and it’s happening just as cryptocurrencies are about to recover. I’m sick of this shit.”
Crypto Rover echoed this sentiment, stating: “I was just starting to recover. This is very frustrating.”
Bitcoin drops below $90,000 due to US airstrike on Venezuela.
I finally started to recover.
This is extremely frustrating. pic.twitter.com/OHdV2zW7Nv
— Crypto Rover (@cryptorover) January 3, 2026
The familiar pattern is back
Throughout 2025, Bitcoin repeatedly reacted to geopolitical and macro events, from the U.S. government shutdown to U.S.-China trade tensions and the Middle East conflict.
Just three days into 2026, Bitcoin appears to be responding to global risks once again.
It remains to be seen how much further Bitcoin will fall.