Amidst recent geopolitical developments, a new narrative has emerged suggesting that former President Donald Trump's focus in Venezuela extends beyond its vast oil reserves to include its potential Bitcoin holdings. This shift in focus comes after the capture of Nicolás Maduro by U.S. forces, which has triggered speculation about the future of Venezuelan assets.
Trump has announced that Venezuela's "interim authorities" will transfer between 30 and 50 million barrels of oil to the United States. The oil would be sold at market price, with the proceeds controlled by Trump as President of the United States. This move has intensified discussions about Venezuela's rumored cryptocurrency reserves, particularly Bitcoin, and whether these might be the next target.
Some reports suggest that the Maduro regime may have accumulated a substantial "shadow reserve" of Bitcoin to bypass international sanctions. Estimates of Venezuela's Bitcoin holdings vary significantly. Project Brazen, citing unnamed sources, speculates that Venezuela could possess around $60 billion in Bitcoin, while Bitcointreasuries.net estimates a more modest 240 BTC, valued at approximately $22 million.
The potential seizure of Venezuelan Bitcoin aligns with Trump's executive order to establish a strategic Bitcoin reserve "at no cost to taxpayers". Acquiring Venezuelan Bitcoin, if substantial holdings exist, could theoretically fulfill this objective. However, legal experts point out that prosecutors would need to establish a direct link between any seized Bitcoin and criminal charges filed in U.S. courts.
The situation has sparked debate within the crypto community. Some observers believe that the U.S. government is more likely to hold any acquired Bitcoin rather than sell it, reinforcing its commitment to building a strategic reserve. Others caution that if Venezuela retains control and sells its crypto stash, it could negatively impact short-term Bitcoin prices. If Venezuela lost access to their private keys, this would actually be bullish for Bitcoin prices. Lost coins reduce total supply permanently.
Beyond the immediate implications for Venezuela and the crypto market, this situation highlights the growing intersection of geopolitics and digital assets. Trump's actions in Venezuela have destabilized oil markets and contributed to Bitcoin's price increase. This interplay suggests that digital assets are becoming increasingly important in geopolitical strategies.
The U.S. action against Venezuela has led to Bitcoin pulling back. Trump accused Venezuela of emptying prisons and sending its worst citizens to terrorize Americans and called Nicolás Maduro Moros "illegitimate". He demanded that Maduro return "Oil, Land, and other Assets" stolen from America.
