The cryptocurrency markets are in green today, with market capitalisation of $3.2 trillion, and 24-hour trading volume of $126.05 billion, according to data on CoinMarketCap. Among tokens, Bitcoin maintains its dominance, holding 58.4% of the pie, followed by Ethereum (12.2%) and other cryptos (29.5%).
According to CoinMarketCap analysis, the overall crypto market rose 1.39% over the last 24 hours due to bullish derivatives activity, a short squeeze, and geopolitical-driven safe-haven demand. The market has also extended a 7-day gain of around 6%, data from Synopsis showed.
Riya Sehgal, Research Analyst at Delta Exchange said, “Traders attributed the rally to early-year repositioning and optimism following US military operations in Venezuela, which analysts say could eventually lower global energy costs and support Bitcoin mining economics.”
Bitcoin price today: Token hovers near $94,000 levels
Bitcoin in particular has had a good run over the past six days, with the token briefly touching the $94,000 level in the early morning (IST) and settling at $93,328.11 at time of writing, this is 0.8% increase over the previous day.
The world’s largest cryptocurrency also saw its market cap rise 0.81% to $1.86 trillion, with trade volumes up 39.34% to $47 billion, the chart showed. Notably, major players bought close to $4 billion Bitcoin in the last 24 hours, according to DeFiTracer.
- The second largest token Ethereum was trading at $3,220.99 (up 1.85%), with market cap of $388.75 billion (up 1.84%) and trade volume of $24.96 billion (up 48.92%).
- It was followed by Tether, which remained steady at $0.9995 (up 0.01%), with market cap of $187.05 billion (up 0.03%), and trade volume of $102.61 billion (up 33.4%).
- Altcoin XRP rose 8.9% to $2.33, with market cap up 8.93% to $141.82 billion and trade volume of $7.74 billion (up 132.62%).
- And rounding off the top five was Binance Coin, trading at $904.62 (up 0.6%), with m-cap of $124.59 billion (up 0.6%) and trade volume of $2.1 billion (10.52%).
Bitcoin, crypto up due to US-Venezuela developments? Experts say…
According to the CoinSwitch markets desk analysis, the situation in Venezuela has not been the major direct driver of this crypto rally. It noted, “Typically, political uncertainty triggers panic and pushes BTC onto exchanges for selling, but no such panic selling has been observed so far. Instead, (Venezuela President Nicolás) Maduro’s arrest appears to be a symbolic rather than a direct bullish trigger for BTC and crypto, refocusing attention on geopolitical risks.”
The analysis felt that impact was “modest” improvement in market sentiment “without a meaningful surge in liquidity or aggressive positioning”. But noted that there is a related factor brewing, “Separately, speculation around a potential decline in oil prices, if US companies gain access to Venezuelan supply, has also supported prices, though this remains anticipatory rather than fundamental.”
Nischal Shetty, Founder of WazirX concurred that while traditional markets are often (and historically) influenced by headlines, any real short and medium term impact is yet to be seen economy wise. “Right now, everything related to Bitcoin can be expected to be influenced by inflation and the Fed. If CPI stays sticky, rate cuts get delayed. If inflation cools, liquidity opens up. Geopolitical events will only matter if it pushes energy prices high enough to change CPI and force the Fed to rethink its rate cut timelines,” he added.
Shetty added that as key factor driving Bitcoin’s price this year is the US Fed’s rate decision. “The risk off behaviour emerging from the US-Venezuela conflict is not a likely event at the moment as oil markets currently see supply-demand balance as comfortable over the near term based on the current oil term structure. This also means little volatility for Bitcoin’s trajectory which will not be as impacted by current global events,” he explained.
Venezuela’s Bitcoin reserves: The dark horse
According to Akshat Siddhant, Lead Quant Analyst at Mudrex, crypto and gold are being approached as safe haven assets amid geopolitical tensions between Venezuela and the US. But cautioned that reactions of major economies such as China and Russia could lead to volatility in the market. “Any developments around the US gaining control over Venezuela-linked Bitcoin reserves could further strengthen market sentiment. In this environment, a decisive breakout above $94,700 may accelerate Bitcoin’s move toward the $100,000 mark, with $90,000 emerging as a key support level,” he felt.
CoinDCX research team also acknowledged reports on the possibility that the US government could seize Venezuela’s Bitcoin and cryptocurrency reserves, noting that this could prove to be an “interesting” turn.
Shetty feels that such a seizure could lead to short term trust led volatility in Bitcoin prices, but there won’t be any fundamental changes for supply in Bitcoin. “Bitcoin ownership is decentralised and documented on a blockchain which authenticates the possession of the assets. When gold was similarly confiscated to add to US’s gold holdings in the last century, it became a national reserve. The claims, if verified, could fuel the already growing interest of countries to add Bitcoin to their monetary reserves,” he added.
Long-term gains in sight? Here’s what crypto experts say
The CoinSwitch markets desk analysis acknowledged sustained momentum in Bitcoin, but noted, “However, spot trading volumes across bitcoin and altcoins have dropped to their lowest levels since November 2023, despite higher prices, pointing to limited spot participation so far. As a result, it is still early to conclude that market sentiment has structurally shifted or that fundamentals have materially improved.”
It feels that the coming days are “critical, particularly around US geopolitical developments, which could significantly influence trader sentiment”. Rather than a sharp rise or gains, the analysis feels that the best-case scenario involves BTC holding the $93,000–$94,000 range and gradually testing the $95,000 level resistance zone.
According to Shetty, global growth projections remain resilient and equity market resilience in Asia, particularly Japan, highlights ongoing risk appetite and regional liquidity strength. “This matters because crypto continues to track equity sentiment in the short run, with capital flows moving in tandem across risk assets,” he added. Shetty feels that capital market reforms and shifting geopolitical structures underscore persistent fragility, but crypto networks, by design, remain borderless and neutral, offering settlement and value transfer independent of institutional reform timelines.
Overall, Siddhant feels that Bitcoin remains on an upward trajectory, and “growing concerns around the US debt reaching a record $38.6 trillion are strengthening Bitcoin’s appeal as a long-term hedge”. He did note that while market setup remains bullish, upcoming macro data like the JOLTS survey and employment report will be key in shaping near-term momentum.
Sehgal noted that technically, on 4 hour chart, Bitcoin’s breakout above its 200-day EMA signals short-term bullish momentum, with resistance seen near $94,500 and support around $91,800. “Overall, the market’s tone remains constructive, with institutional activity, regulatory progress, and a broader risk-on environment positioning crypto assets for potential continuation gains through mid-January,” she added.
