Venezuela tensions: Bitcoin rises above $93,000, crypto markets edge higher

Bitcoin edged higher on December 5, tracking a broader rally in technology stocks, even as gains in the world’s largest cryptocurrency remained capped by heightened geopolitical uncertainty following a dramatic US military offensive in Venezuela.  

The cryptocurrency rose 2.6% to $93,613 by 10:18 ET (15:18 GMT), extending a tentative recovery that has taken shape over the past few sessions. The move mirrored strength in US tech stocks, which have regained momentum on renewed optimism around artificial intelligence-led growth. Historically, Bitcoin has shown a tendency to move in tandem with high-growth technology shares during periods of risk-on sentiment.  

Broader crypto markets also traded higher, benefiting from the same tailwinds. However, investors remained cautious, with attention split between rising geopolitical tensions in Latin America and a busy slate of key economic data due later this week, most notably US nonfarm payrolls figures for December.  

Market sentiment was jolted late last week after US forces captured Venezuelan President Nicolas Maduro in an operation that has significantly escalated political uncertainty in the oil-rich nation. Maduro was reportedly detained in New York and is expected to face legal proceedings in a U.S. court. President Donald Trump said Washington would “run” Venezuela until a new leader is elected and signalled plans to open up the country’s oil sector.  

While such events might typically spark a flight to safety, investor appetite for risk assets has so far remained resilient. US stock futures pushed higher on Monday, led by technology shares, while gold and silver also rallied, reflecting a more complex market response to geopolitical stress.  

Bitcoin’s reaction has been mixed. Although often promoted as a hedge during times of turmoil, the token has increasingly traded like a risk asset in recent years. It tumbled 24% in the fourth quarter, sharply underperforming traditional safe havens such as gold and silver. The cryptocurrency ended 2025 down about 6.5%, having largely missed a year-end equity rally during the Christmas holiday period.  

That said, technical indicators are showing tentative signs of improvement. Bitcoin recently surpassed its 50-day moving average for the first time since a broader crypto market selloff began in early October, suggesting prices may be finding firmer footing. The token is now up around 6% so far this year, despite being down 6.4% on a calendar-year basis in 2025.  

Investor flows also point to a gradual shift in sentiment. On January 2, investors poured a combined $471 million into 12 US-listed spot Bitcoin exchange-traded funds, marking the largest single-day inflow since November 11. The renewed interest suggests some institutional investors are selectively returning to the market after months of subdued activity.  

Derivatives markets are showing similar signs of heating up. Bitcoin’s perpetual futures funding rate — a key gauge of the cost of maintaining bullish positions — has climbed to its highest level since October 18, according to CryptoQuant data, indicating growing demand for leveraged long bets.  

Meanwhile, traditional markets reflected a blend of risk-taking and caution. Silver futures for March delivery jumped 3%, while gold futures for February rose nearly 2% on the MCX, buoyed by safe-haven demand. Brent crude prices edged lower, even as geopolitical risks lingered over global energy markets.