U.S. Action in Venezuela Spark Fresh Crypto Market Crash Fears.

U.S. Action in Venezuela Triggers New Fears of Crypto Market Downturn.

Fresh fear has entered the crypto market as reports suggest the US may launch a major operation in Venezuela.

After U.S. action in Venezuela, where the US carried out airstrikes across Venezuela late Friday night, causing explosions in the capital city, Caracas, before sunrise. Just after a short period of time, Donald Trump announced that US forces had captured the president, Nicolas Maduro, and his wife, Cilia Flores, and flown them out of the country.

Source - Jaybefaunt

Cause of the Conflict 

Since taking charge for the second time as a president, Donald Trump has taken a tough stance against Venezuela’s leader, Nicolás Maduro.  They launched a strong pressure campaign against the country's government, blaming Maduro for causing instability across the Americas. In July, the US government announced a reward of $50 million for information leading to Maduro’s capture, calling him one of the world’s biggest drug traffickers.

Trump’s administration also labeled country criminal groups, such as Tren de Aragua, as terrorist organizations. The US then carried out airstrikes targeting suspected drug traffickers in the Caribbean Sea. Along with this, the US began seizing country oil tankers and increased its military presence near Venezuela’s coastal waters.

What experts has to say

Experts suggest that, Amid this tension, the situation gets worse, and it will definitely affect the Crypto market in a negative way. After this news all the investors are worried. The bad part is that this news came when the crypto sector had just started to stabilize.

This is not the first time when crypto market recoveries have often been interrupted by rising global tensions. Whenever Bitcoin and altcoins start showing signs of recovery, a new global conflict seems to appear unexpectedly which is not something new.

In the past, global political events have caused sudden drops in the crypto market. For example, in June last year, digital assets fell sharply after former US President Donald Trump announced that the United States had carried out strikes on Iranian nuclear facilities. Following the news, major cryptocurrencies like Bitcoin and Ethereum lost more than 5% of their value in a short period of time.

Conclusion

Amidst this war, the Crypto market is still so calm. As per now, Bitcoin is trading around $89,000 and has not shown any strong reaction to news up till yet. Some traders believe the current weakness is driven more by fear than by real market problems. Traders also suggested that if U.S. action in Venezuela tensions do not increase further, Bitcoin may move back toward the $96,000 to $100,000 range in the coming days or weeks.

Disclaimer - This is not financial advice. Please do your research before investing. CoinGabbar is not responsible for any financial losses.