In a surprising turn amid escalating geopolitical tensions, major cryptocurrencies like Bitcoin and Ethereum surged on Monday, January 26, 2026, as investors appeared to shrug off the ongoing U.S. military operations in Venezuela. Bitcoin climbed above $94,000, marking a roughly $6,000 increase since the operations began late Friday night. This rally coincided with a broader market uptick, including gains in U.S. stocks, particularly in the energy sector, fueled by prospects of American investment in Venezuela's vast oil reserves following reports of President Nicolas Maduro's ouster.
The cryptocurrency market saw robust activity, with global capitalization rising 2.28% to $3.20 trillion over the past 24 hours. Trading volumes for Bitcoin jumped 68%, while Ethereum's volume spiked 78%, pushing the second-largest cryptocurrency to an intraday high of $3,261. Other digital assets, including XRP and Dogecoin, also posted gains, contributing to the sector's momentum. According to data from Coinglass, over $450 million in positions were liquidated across the crypto market in the last day, with approximately $362 million coming from short sellers who bet against the upward movement.
Bitcoin's open interest increased by 2.87%, signaling renewed trader confidence. On the Binance exchange, more than 50% of traders holding Bitcoin positions were positioned long, based on the platform's Long/Short Ratio. Despite the bullish price action, market sentiment remained cautious, with the Crypto Fear and Greed Index registering in the "Extreme Fear" zone, reflecting lingering uncertainties tied to global events.
The crypto surge mirrored a positive day on Wall Street, where stocks rallied amid optimism over energy developments. The Dow Jones Industrial Average gained 594.79 points, or 1.23%, closing at a record 48,977.18. The S&P 500 rose 0.64% to 6,902.0, and the Nasdaq Composite edged up 0.69% to 23,395.82. Energy stocks led the advance, with Chevron Corp. shares climbing 5.10% and Exxon Mobil Corp. up 2.21%, according to trading data.
President Donald Trump attributed the energy sector's boost to upcoming U.S. investments in Venezuela's oil industry. In a statement, Trump said U.S. companies are preparing to pour billions into the South American nation's resources now that Maduro has reportedly been removed from power. This comes after U.S. military actions initiated on Friday evening, which officials described as aimed at supporting a transition away from Maduro's regime. Oil prices responded accordingly, with West Texas Intermediate crude surpassing $58 per barrel on Monday.
Venezuela's political crisis has deep roots, dating back to Maduro's contested 2018 reelection, which drew international condemnation and U.S. sanctions. The country's oil sector, once a global powerhouse, has been crippled by mismanagement and sanctions, producing far below its potential of over 3 million barrels per day. Recent U.S. involvement, including the military operations starting Friday, has heightened tensions but also sparked speculation about economic stabilization. While Maduro's ouster remains a point of contention— with some Venezuelan officials denying it outright—investors seem focused on the potential for normalized oil production and foreign capital inflows.
Analysts in the crypto space offered optimistic outlooks, viewing the rally as a sign of resilience. Lacie Zhang, a research analyst at Bitget Wallet, told Benzinga that despite "elevated uncertainty" from geopolitical developments, cryptocurrency fundamentals are constructive. "Bitcoin has room to push toward $105,000, while Ethereum could test $3,600, as traders balance inflation risks with crypto's deflationary characteristics and long-term adoption narrative," Zhang predicted in a note.
Michaël van de Poppe, a well-known cryptocurrency commentator, echoed the positive sentiment on social media. He noted that "slowly, but surely," momentum is returning to the markets. Van de Poppe highlighted a critical support level, stating, "There’s one crucial level which must hold: the area around $90-$91,000. If that holds and a higher low is established, we’re in for a test at $100,000." His comments came as Bitcoin traded firmly above the $94,000 mark, extending its New Year rally that began in early January.
The interplay between traditional markets and cryptocurrencies has grown more pronounced in recent years, especially as institutional investors increasingly view digital assets as hedges against inflation and geopolitical risks. Ethereum's performance, in particular, benefited from ongoing developments in decentralized finance and layer-2 scaling solutions, which have bolstered its utility beyond simple speculation. Meanwhile, altcoins like XRP and Dogecoin saw double-digit percentage gains in the 24-hour period, though they trailed the leaders in absolute terms.
Broader economic context adds layers to the story. The U.S. Federal Reserve's recent signals of steady interest rates have supported risk assets, including stocks and crypto, by alleviating fears of aggressive tightening. Inflation concerns persist, however, with consumer prices hovering around 3% annually. In Venezuela, the humanitarian crisis—marked by hyperinflation and shortages—has worsened under Maduro, prompting millions to flee since 2015. U.S. operations, codenamed Operation Liberty Dawn according to Pentagon briefings, aim to facilitate a democratic transition, though details remain classified.
Energy executives have been vocal about the opportunities. Chevron, which has operated in Venezuela under license despite sanctions, stands to benefit significantly from eased restrictions. Exxon Mobil, with historical claims to Venezuelan fields, could see revived projects. Trump's comments on Monday morning from the White House suggested that deals could be finalized within weeks, pending stabilization. Oil market analysts, citing OPEC reports, estimate Venezuela could add 1 million barrels per day to global supply within a year if investments proceed smoothly.
Not all views are uniformly bullish. Some market watchers caution that the crypto rally could be short-lived if Venezuelan unrest escalates. The Crypto Fear and Greed Index's "Extreme Fear" reading, while common during volatile periods, underscores potential for pullbacks. Van de Poppe's emphasis on the $90,000-$91,000 support zone for Bitcoin illustrates the fragility; a breach could trigger further liquidations. Zhang's prediction, while forward-looking, acknowledges inflation risks that might draw capital back to safer assets like U.S. Treasuries.
Looking ahead, the coming days will be pivotal. Traders will watch Bitcoin's ability to hold above $94,000 and Ethereum's push toward $3,600. In Venezuela, international observers from the United Nations are scheduled to arrive this week to assess the post-Maduro landscape. U.S. officials, speaking on condition of anonymity, indicated that military drawdown could begin as early as next weekend if opposition forces consolidate control. For investors, the convergence of crypto enthusiasm and energy optimism signals a complex but potentially rewarding environment.
As markets digest these developments, the rally serves as a reminder of crypto's decoupling from traditional shocks—at least temporarily. With open interest climbing and short positions wiped out, the stage is set for continued volatility. Whether Bitcoin reaches $100,000 or beyond will depend on how global events unfold, but for now, the digital asset world is riding high on waves of cautious optimism.