US President Donald Trump announced the “closure” of Venezuelan airspace on Saturday, sharply escalating tensions between Washington and Caracas. Trump, who avoided giving details, made this statement following the ongoing military buildup in the Caribbean for weeks, bringing the “risk of imminent war” in the region back onto the agenda. The Venezuelan government has described the US actions as a “colonialist threat to Latin America,” while President Nicolás Maduro has argued that Washington is “trying to fabricate justifications to pave the way for military intervention.” Caracas has been holding regular military exercises in recent weeks and calling for “wide-scale mobilization” against a potential attack. The Trump administration has deployed a massive naval force to the southern Caribbean since early September. While the US claims these operations are “anti-drug trafficking,” no evidence has been released to suggest the targeted boats are drug-related. At least 83 people have been killed in the attacks to date. Last week, Washington further escalated pressure on the Cartel de los Soles, a group long associated with Venezuela's security apparatus, by designating it a “foreign terrorist organization.” Critics say these steps are part of an unlawful process to overthrow Maduro's government. From the beginning of his second term, Trump declared Maduro a “global terrorist leader,” imposed a 25% additional tariff on countries buying Venezuelan oil, and increased the reward for Maduro’s capture to $50 million. In recent weeks, the US has deployed the USS Gerald R. Ford aircraft carrier, other warships, thousands of troops, and F-35 fighter jets to the region. Trump, in his recent remarks, has stated that ground attacks inside the country are “imminent.” According to reports in The New York Times and the Wall Street Journal, Trump held a phone call with Maduro last week. Speaking to reporters aboard Air Force One, Trump said, “I might talk to him. Maybe. We're talking.” Related News: A Country Announces a $300 Million Cryptocurrency Investment Directly from Its Foreign Exchange Reserves When asked by a journalist why he wanted to meet with Maduro, who was declared a “terrorist organization leader” by the US, Trump responded as follows: “If we can save lives, we'll take the easy way. If necessary, we'll take the hard way.” The Trump administration's deadly air and naval strikes in the Caribbean have drawn harsh criticism for violating both the U.S. Constitution and international law. According to the Washington Post, Defense Secretary Pete Hegseth ordered the military to “kill all passengers on boats suspected of carrying drugs.” Hegseth denied the allegations, calling them “fake news,” but Congress has launched a formal investigation into the incident. The impact of US-Venezuela tensions on global markets could be particularly critical for Bitcoin. When geopolitical risks rise, investors typically turn to safe assets, but in recent years, Bitcoin has at times taken on a geopolitical hedge role similar to gold. While the FED is expected to cut interest rates in December, a possible war on the Washington-Caracas line could completely change this picture. In a scenario where tensions rise with a limited operation but not outright war, Bitcoin could initially experience volatility due to global risk-off behavior. US air or missile strikes against limited targets within Venezuela could briefly raise oil prices and create market unrest, but they might not cause widespread geopolitical disruption. In such a scenario, BTC's volatility could remain limited if the Fed doesn't shelve interest rate cuts. In a scenario where the US moves beyond its limited operations and begins using ground troops inside Venezuela, leading to a more widespread military operation, global markets could enter a sharp risk-off period. A rise in oil prices above $100 could disrupt inflation expectations and force the Fed to cancel its December interest rate cut. As economic uncertainty grows, Bitcoin may generally price the initial shock negatively. *This is not investment advice. Continue Reading: Trump Speaks, Tensions Between the US and Venezuela Are Very High – What Will Happen to Bitcoin If It Turns Into War?
