Bitcoin hits $94,000: Venezuela's secret reserves rumors trigger market turbulence

President Trump announced that the United States has arrested Venezuelan President Nicolás Maduro on drug charges during an operation called “Operation Absolute Resolve.” Subsequently, the market was abuzz with a major rumor: since 2018, Venezuela has secretly accumulated between 600,000 and 660,000 bitcoins by converting smuggled gold and oil proceeds into Bitcoin, which at current prices could be worth up to $60 billion to $67 billion.

Bitcoin’s price reacted sharply to this rumor, soaring to $94,500 before pulling back to hover around $92,500. As of January 7, 2026, according to Gate data, BTC/USDT is trading at $92,715, down 1.18% in the past 24 hours.

Event Overview and Market Response

In early 2026, geopolitical events once again became a key driver in the cryptocurrency market. The US military action against Venezuela and the arrest of President Maduro triggered a chain reaction across global financial markets.

The crypto market demonstrated remarkable resilience to this geopolitical shock. Bitcoin’s price experienced only brief fluctuations after the news was announced, quickly stabilizing above $90,000 and then climbing higher.

Some industry observers noted: “The US bombed a country and captured its leader, and it was over the weekend, yet Bitcoin hardly moved.” This market behavior reflects the increasingly complex relationship between cryptocurrencies and traditional risk assets. Notably, alongside the rising Bitcoin price, there are rumors that Venezuela may be hiding large Bitcoin reserves.

Rumored Venezuelan Bitcoin Reserves

According to multiple intelligence reports and market analyses, Venezuela may have accumulated an astonishing “shadow Bitcoin reserve.” This rumor is not unfounded. A report from crypto options firm QCP indicated that Venezuela’s “shadow Bitcoin reserves” might serve as a financial workaround. The channels for accumulating these bitcoins are quite diverse. The report states that from 2018 to 2020, Venezuela exported dozens of tons of gold from Orinoco Mining Arc and converted about $2 billion worth of gold into Bitcoin, when the average Bitcoin price was only $5,000. Just this batch of Bitcoin, at current prices, would be worth approximately $36 billion, forming the basis of the country’s secret crypto reserves.

In addition, between 2023 and 2025, Maduro’s regime increasingly demanded that the state-owned Venezuelan oil company (PDVSA) settle crude oil exports in USDT. These stablecoins were then “washed” into Bitcoin to reduce the risk of account freezes and decrease dollar exposure.

Possible US Actions and Market Impact

The US faces a critical decision on how to handle this potentially existing Bitcoin reserve. Sources suggest three main scenarios: the assets could be frozen through legal proceedings; they could be added to the US strategic Bitcoin reserve; or they could be liquidated via auction. Analysts believe that freezing the assets or incorporating them into a strategic reserve are the most likely options. Such actions could lock up Bitcoin supply for 5-10 years and create a bullish narrative for Bitcoin and institutional holders like MicroStrategy. QCP, a crypto options firm, also expressed similar views, stating that if any seized Bitcoin is retained by the US rather than liquidated, it would reinforce market perceptions that the US government is accumulating crypto reserves.

Historically, large government-held Bitcoin entering the market could exert downward pressure on prices. In 2024, the German state of Saxony sold 50,000 BTC( worth about $3 billion), triggering a 15-20% market correction. In contrast, if Venezuela’s purported holdings of 600,000 BTC were seized or frozen, it could cause an unprecedented supply shock, reduce available liquidity, and support higher prices.

Bitcoin Price Analysis Based on Gate Data

As of January 7, 2026, Gate data shows BTC/USDT at $92,715, down 1.18% in 24 hours. This figure aligns with other sources. StatMuse reports that Bitcoin closed at $93,882.55 on January 5, up 7.3% for the month. Caixin also noted that Bitcoin hit a new high since November last year on Monday, around $93,300, with a year-to-date increase of 6.65%.

Market dynamics indicate traders are closely watching Bitcoin’s price levels, with $94,000 seen as a key breakout point and $88,000 as an important support. Tom Lee, co-founder of Fundstrat Global Advisors, is more optimistic, suggesting Bitcoin could hit a new all-time high this month.

According to Gate’s BTC/USDT liquidation map, at the current price of $92,715 USDT, if the market falls back to around $90,370, it could trigger over $173 million in long liquidations; conversely, if the price rises further to around $92,226, it could trigger over $206 million in short liquidations. Overall, the potential short liquidations significantly exceed longs, indicating that in the current high-volatility environment, bears face greater squeeze risks, and short-term price swings may exhibit pronounced asymmetric features.

Current Market Support Factors

Beyond geopolitical rumors, Bitcoin’s recent strength is supported by multiple factors. Fund flow data shows that on January 2, investors poured a total of $471 million into 12 US-listed Bitcoin ETFs, marking the highest single-day inflow since November 11 last year. Continuous inflows into spot ETFs have provided a solid foundation for Bitcoin’s price. In the week ending January 2, spot ETF inflows totaled about $459 million, offering key support for price recovery. On-chain data also shows positive signals: some addresses shifted from selling to accumulation, with a net increase of over 10,700 BTC in a single day, alleviating selling pressure. Meanwhile, five of the top 100 publicly listed companies increased their Bitcoin holdings in the past week, accumulating a total of 7,110.9 BTC. Market sentiment indicators, such as the perpetual futures funding rate, have reached their highest level since October 18, further suggesting a shift in market mood.

Timothy Misir, research director at crypto firm BRN, stated: “The market is stabilizing rather than accelerating. The next few weeks will determine whether new funds can translate into sustained upward momentum.”

Venezuela’s Crypto Adoption and Market Impact

It’s worth noting that Venezuela is itself a country with a high rate of cryptocurrency adoption. Hyperinflation, US sanctions, and the collapse of the bolivar have driven widespread use of Bitcoin and stablecoins. By the end of 2025, up to 10% of grocery store payments and nearly 40% of peer-to-peer transactions are conducted in crypto. Additionally, remittances via stablecoins account for nearly 10% of inflows.

According to Chainalysis, Venezuela ranks around 17th globally in crypto adoption. This high adoption rate makes the rumors of Venezuela holding large Bitcoin reserves more credible. Maduro’s arrest adds further uncertainty. A transitional government influenced by US interests might relax mining restrictions, promote crypto-friendly policies, and prioritize recovering what is purported to be Bitcoin holdings.

However, until private keys are surrendered or legal claims are resolved, the 600,000 BTC remains effectively “locked.” This causes short-term volatility but could lead to a long-term supply shock, supporting higher Bitcoin prices.

Bitcoin hesitates near the $94,000 mark as bulls and bears fiercely contest at high levels. According to Gate’s liquidation map, over $200 million in short positions could be at risk of liquidation near current levels. The whereabouts of Venezuela’s 600,000 BTC remains shrouded in mystery. These coins could be frozen and added to strategic reserves by the US, or gradually clarified through lengthy legal processes. Regardless of the outcome, the fact that a South American country might hold 3% of the world’s circulating Bitcoin supply has already shaken market perceptions of Bitcoin distribution.