Potential US Seizure of Venezuela's Alleged $60 Billion Bitcoin Reserve Sparks Interest

By Omkar Godbole (All times ET unless indicated otherwise) The new year has begun on a positive note for crypto, with Bitcoin currently trading near $92,700, representing a 1.3% increase over the past 24 hours and a 5% gain in the first five days of 2026. Major alternative cryptocurrencies such as XRP, SOL, BNB, and ETH have seen increases ranging from 1% to 3% over the past 24 hours, with XRP experiencing a 2.49% rise, SOL a 1.27% increase, BNB a 0.54% gain, and ETH a 0.99% boost. The CoinDesk 20 Index (CD20) has risen by 1.25%, reflecting the strength of the largest and most active assets, while the CoinDesk 80 Index (CD80) has relinquished its early gains, indicating relative weakness in the broader alternative cryptocurrency market. According to analysts, the recent increase in Bitcoin's price can be attributed to safe-haven demand following the US action in Venezuela and the exhaustion of tax-related selling. Deribit data shows a renewed demand for bullish option bets among traders, with a focus on the $100,000 strike call. Laser Digital noted in an email to CoinDesk, "We observed ETF inflows on January 2nd, following consecutive outflows in December, and 3000x lots of Jan-end BTC calls were executed on the last day of December." Over the weekend, the US launched an attack on Venezuela, capturing President Nicolás Maduro. This has sparked speculation on crypto social media that Venezuela may be in control of a massive, unverified $60 billion shadow Bitcoin reserve, potentially comparable to that of the Bitcoin treasury company MicroStrategy (MSTR), which holds BTC worth over $62 billion. If these claims are true, it is possible that the US may seize these coins and add them to its strategic Bitcoin reserve. QCP Capital stated in a market note on Monday, "The prospect of the US adding any seized BTC to its strategic reserve reduces the likelihood of forced selling and highlights BTC's growing strategic importance as nations compete to accumulate." Another trending narrative suggests that President Donald Trump may soon tap into Venezuela's 300 billion barrels of oil reserves, potentially leading to a surge in supply and a subsequent crash in oil prices. This, in turn, could enable the Federal Reserve to cut interest rates more rapidly. However, analysts point out that having reserves and producing them are two distinct things. Venezuelan crude from the Orinoco Belt is heavy, impure sour crude, making extraction and refinement difficult and expensive, requiring significant investments. As a result, the reserves may not be tapped into in the near future, limiting their impact on oil prices. In other words, the anticipated disinflationary impulse may not materialize soon. In other key news, Ethereum co-founder Vitalik Buterin announced that the network has effectively solved the blockchain scalability trilemma, achieving a balance between decentralization, security, and high transaction speed, thanks to key upgrades such as zkEVMs and PeerDAS. In traditional markets, the dollar index has risen for the fourth consecutive trading day, surpassing 98.50. Futures tied to the S&P 500 and Nasdaq 100 have traded higher. This week, a flurry of key US data releases is expected, starting with the ISM Manufacturing PMI later today, followed by the non-manufacturing PMI, the ADP Employment report, and nonfarm payrolls data in the days ahead. Stay alert! Read more: For analysis of today's activity in alternative cryptocurrencies and derivatives, see Crypto Markets Today. What to Watch: Token Events Conferences Market Movements Bitcoin Statistics Technical Analysis Crypto Equities Crypto Treasury Companies ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors While You Were Sleeping