Bitcoin ([BTC]( fell below $90,000 on January 3 after President Donald Trump announced US forces captured Venezuelan President Nicolás Maduro.
The cryptocurrency briefly declined to approximately $89,600 following the early morning announcement before stabilizing.
Ethereum and XRP showed similar patterns, dipping then recovering to pre-announcement levels.
Trump said on Truth Social that US conducted a "large scale strike against Venezuela" and that Maduro and his wife were "captured and flown out of the Country."
What Happened
Explosions were reported in Caracas around 2 AM local time on January 3.
Venezuelan authorities accused the US of hitting military targets and declared a national emergency.
Venezuelan Vice President Delcy Rodriguez said the government doesn't know Maduro's whereabouts and demanded "immediate proof of life" from the Trump administration.
CBS News reported that US Army Delta Force was involved in the operation.
Bitcoin traded near $89,772 at the time of reporting, down from above $90,000 before the headlines.
Ethereum (ETH) dipped toward $3,000 before recovering to $3,100.
XRP briefly traded near $1.90 before bouncing back above $2.00.
Trading showed quick initial reactions followed by sideways movement rather than sustained selloff.
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Why It Matters
The military action represents an extraordinary escalation in US-Venezuela tensions that have mounted for months.
Trump has accused Maduro of running a drug trafficking operation and increased the bounty for his capture from $15 million to $50 million.
Venezuela ranks 11th globally in cryptocurrency adoption according to TRM Labs' 2025 Country Crypto Adoption Index.
Venezuelans have increasingly used cryptocurrencies to preserve savings amid hyperinflation and economic instability.
The limited cryptocurrency market reaction contrasts with typical risk-off behavior during geopolitical crises.
Analysts noted similarities to Bitcoin's response during other military escalations, where initial volatility faded quickly as traders reassessed positioning.
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