Venezuela, Power, and the Bitcoin Reaction

Hello traders, welcome back in the New Year. New year, same mindset.

The market is green today, which is a very happy first week of the year.

The market didn’t react to Venezuela like a classic geopolitical shock. Price action behaved the way it usually does when energy supply and control over hard assets come into focus.

So where does Bitcoin stand in all this? Let’s talk about it step by step.

Energy Control and Bitcoin Reaction

Energy (especially oil) sits at the top of the cost chain. When oil is cheaper or more available, it costs less to move goods, make products, and run businesses.

If markets start believing that oil supply will improve:

• Fuel prices are less likely to spike
• Inflation pressure cools down a bit

 

When inflation looks less scary, central banks don’t feel as rushed to:

• Raise interest rates
• Keep money tight

 

So How Does Bitcoin Come Into the Picture?

Bitcoin historically performs best when:

• Liquidity stress is easing
• Real yields stop rising
• The dollar loses momentum

 

In simpler words, if there is better oil supply, lower energy costs, and lower inflation fear, there is less pressure on interest rates — which means

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