Geopolitical tensions drive energy stocks higher, Bitcoin returns to 94K

As the United States took action against Venezuela, the energy markets strengthened on expectations of infrastructure rebuilding, driving major US stock indices higher across the board. Despite the ongoing geopolitical conflict risks, the market chose to focus on the long-term revival plans for the energy industry and the easing rate expectations brought about by a soft labor market. Meanwhile, the cryptocurrency market demonstrated strong recovery momentum, with Bitcoin (BTC) rising to a one-month high, reaching a peak of $94,789 this morning, and Ethereum (ETH) also increased by 2.8% to above $3,200.

Energy stocks lead the rally, with US stocks rising across the board

Although the US attacked Venezuela and detained leader Nicolás Maduro (Nicolás Maduro Moros), causing crude oil prices to rise, investors bet that this move would not lead to a larger geopolitical conflict, and the stock market still advanced. The Dow Jones Industrial Average touched 49,000 points intraday on Monday, setting a new record high. The S&P 500 index rose slightly by 0.64%, and the Nasdaq also gained 0.69%.

The rally in energy stocks is driven by market expectations that these companies will benefit from the reconstruction of Venezuela’s oil infrastructure. US President Trump proposed a US-led plan to revive the Venezuelan oil industry, causing shares of Chevron and ExxonMobil to soar by 5.1%, seen as the biggest beneficiaries, as these companies are currently operating in Venezuela, which holds the world’s largest proven oil reserves.

Venezuela’s interim president Delcy Rodríguez requested cooperation with the US, after initially expressing strong outrage over Maduro’s detention, her attitude toward the Trump administration has softened. Maduro made his first court appearance in the US, denying charges of drug trafficking and terrorism.

Key US economic data are likely to influence market trends over the next week. In addition to the December employment report, the US Bureau of Labor Statistics will release data on job openings, resignations, and layoffs for November on Wednesday. Given the soft labor market conditions, the Federal Reserve has lowered its short-term borrowing rate target range at each of its past three meetings, and officials are expected to further cut the range this year.

Bitcoin rises to 94K, ETH surpasses 3,200

Driven by geopolitical shifts, the momentum of altcoins, and improved risk sentiment, the cryptocurrency market has increased by 3.14% over the past 24 hours, with the total market cap reaching $3.22 trillion.

Bitcoin reached a one-month high, peaking at $94,789 this morning, and Ethereum also rose by 2.8% to above $3,200. Altcoins surged across the board, with XRP up nearly 13% to $2.35, BNB back above $900, and SOL holding steady at the $130 support level.

Bitcoin options data show that traders are focusing on Bitcoin’s return to the $100,000 level, optimistic that after the crypto market crash in Q4, investors will reallocate to digital assets. The funding rate for Bitcoin perpetual futures (measuring the cost of borrowing for bullish bets) also reached its highest level since October 18.

This article: Geopolitical tensions drive energy stocks higher, Bitcoin returns to 94K first appeared on Chain News ABMedia.