Bitcoin's recent price surge faced a setback on Saturday morning as geopolitical tensions in Venezuela impacted the cryptocurrency market. Based on the data provided in the document, the price of Bitcoin fell from a multiweek high of 91,000 to below 90,000 amid reports of explosions in Caracas, raising concerns about potential U.S. military action.
Bitcoin's Value Drop Linked to Explosions in Venezuela
The drop in Bitcoin's value coincided with reports of several explosions in Venezuela's capital, which are speculated to be linked to possible strikes by the United States. Although the exact cause of the explosions remains unconfirmed, U.S. President Donald Trump has issued warnings regarding ground strikes and has positioned a navy task force in the Caribbean region.
U.S. Administration Aware of the Situation
According to the BBC, the Trump administration is aware of the situation, but no official statement has been released yet. Meanwhile, CNN reported that the explosions resulted in power outages in various parts of Caracas, with journalists on the ground noting the sound of aircraft overhead.
Bitcoin's Price Reaction to Geopolitical Events
As the news broke, Bitcoin's price, known for its sensitivity to geopolitical events, quickly reacted. After reaching a peak of 91,000, the cryptocurrency saw a sharp decline, dropping over a thousand dollars in less than an hour, and is currently trading at approximately 89,500.
In a recent development, U.S. President Donald Trump announced a planned military strike against Venezuela, targeting drug cartel operations. This escalation follows the recent geopolitical tensions that have already affected Bitcoin's market, as detailed in the latest news.
