Bitcoin Slides After Trump Labels Venezuelan Government a Terror Group
President Trump’s Dec. 17, 2025 decision to label the Venezuelan government a terrorist organization and order a blockade of sanctioned oil tankers lifted oil prices and triggered a broad risk-off move. Bitcoin (BTC) pulled back alongside U.S. equities as traders sought liquidity and priced in the economic effects of potential supply disruptions and tougher sanctions. The immediate reaction looked driven by macro and geopolitical repricing rather than changes in crypto fundamentals.
The escalation follows a Sept. 2, 2025 U.S. strike on a suspected drug-running vessel that killed nine people, adding a volatile layer to Washington-Caracas tensions. For crypto markets, the episode matters because sustained oil-driven inflation or more sanctions could affect Fed policy, market liquidity, and risk appetite — all key drivers for BTC. Investors will be watching oil, diplomatic responses, and any further military developments for directional cues.