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Tag: Venezuela

Trump’s Gas Price Rule and Bitcoin’s Fate

Introduction to the 10% Gas Price Rule

According to Arthur Hayes, co-founder of BitMex, President Trump’s Venezuela move could have a significant impact on Bitcoin’s price. Hayes explains that Trump’s strategy is to print massive amounts of money to boost the economy, making voters feel rich, while keeping gas prices from spiking to avoid alienating them.

The 10% Rule and Its Implications

Hayes points to the ‘10% rule’ that has decided past elections: when national average gas prices rise 10% or more in the three months before an election compared to January of that year, control of the government switches parties. This rule is crucial in understanding Trump’s move on Venezuela, which has the world’s largest proven oil reserves.

Bitcoin’s Fate Tied to Gas Prices

Hayes believes that if liquidity increases while gas prices stay cheap, Bitcoin’s price will surge. However, if oil prices spike, the rally will die. This creates a simple trade based on the 10% gas price rule.

Expert Insights and Analysis

As an expert in the field, it’s clear that the relationship between gas prices, economic policy, and cryptocurrency is complex. The 10% rule serves as a significant indicator of election outcomes and, by extension, the fate of Bitcoin.

The move on Venezuela is a strategic play to keep gas prices low, potentially boosting the economy and supporting Trump’s re-election bid. However, the impact on Bitcoin and the broader cryptocurrency market will depend on how these factors interplay.

Conclusion and Future Implications

In conclusion, the 10% gas price rule will play a crucial role in deciding Bitcoin’s fate in 2026. As the situation unfolds, it’s essential to keep a close eye on gas prices, economic policy, and their impact on the cryptocurrency market.

January 7, 2026
Venezuela’s Secret Bitcoin Stash: 600,000 BTC in Shadow Reserves

Introduction to Venezuela’s Bitcoin Reserve

Venezuela has been at the center of significant economic and political turmoil in recent years. One aspect that has garnered attention is the country’s alleged accumulation of a substantial amount of Bitcoin, estimated to be around 600,000 BTC, valued between $60 billion and $67 billion, as reported by BeInCrypto. This stash, if confirmed, would make Venezuela one of the largest holders of Bitcoin globally, surpassing many institutional investors and even some countries.

Impact on Global Bitcoin Dynamics

The existence of such a large reserve has profound implications for the global Bitcoin market. According to Yahoo Finance, the seizure or freezing of these assets could lead to unprecedented supply shocks, potentially reducing available liquidity and supporting higher prices. This scenario is reminiscent of the market correction triggered by the German state of Saxony’s sale of 50,000 BTC in 2024, which caused a 15-20% market correction.

The Role of Crypto in Venezuela’s Economy

Crypto has played a significant role in Venezuela’s economy, especially as a tool for survival amidst hyperinflation and a collapsed banking infrastructure. AInvest highlights Venezuela’s 2025 crypto adoption index ranking, which stands at 18th globally, reflecting the widespread use of crypto for remittances and trade. This underscores crypto’s dual role as both an economic survival tool and a vector for sanctions evasion, reshaping Bitcoin’s institutional adoption trajectory.

US Intervention and Oil Price Shock

The U.S. military action in Venezuela and plans to seize control of the country’s oil reserves have led to speculation about a potential decrease in oil prices, which could be beneficial for Bitcoin. Yahoo Finance reports that Bitcoin’s price has experienced a near 5% increase over the past three days, exceeding $90,000 per Bitcoin, with the broader crypto market gaining about $100 billion.

Conclusion and Future Implications

The situation with Venezuela’s alleged Bitcoin reserve and its implications for the global crypto market is complex and multifaceted. While the immediate effects of such a large stash coming into play are uncertain, it’s clear that crypto continues to play a critical role in economies under stress and is increasingly intertwined with global economic and political dynamics.

January 5, 2026
Venezuela’s Oil Revenue in USDT: A New Era

Introduction to Venezuela’s Oil Sales

Venezuela has been making headlines with its innovative approach to oil sales, particularly with the integration of stablecoins like USDT. According to economist Asdrubal Oliveros, as reported on Reddit, the country collects approximately 80% of its crude oil sales revenue in USDT.

Understanding Venezuela’s Economy

Venezuela’s economy is heavily reliant on oil exports. As The Conversation notes, oil constitutes more than 80% of the country’s exports, with the sector making up about 20% of Venezuela’s total GDP and over 50% of government income.

The Role of USDT in Venezuela’s Oil Strategy

The use of USDT in oil sales is a strategic move by Venezuela to navigate the complexities of international sanctions and to find new avenues for revenue. Bitcoin.com reports that nearly 80% of oil revenue is collected in cryptocurrencies, highlighting the significant role of digital assets in the country’s economy.

Implications and Future Directions

This shift towards collecting oil sales revenue in USDT signals a new era in Venezuela’s economic strategy, one that is more aligned with digital currencies and less dependent on traditional banking systems. As El Pais suggests, Venezuelan oil, despite its challenges, remains a coveted resource due to its unique properties and the country’s historical significance in the oil industry.

December 23, 2025