Bitcoin rose 12% to $68,300 amid unconfirmed reports of Venezuela deploying a state-backed digital currency in a covert operation. Market chatter intensified over claims of a 'shadow reserve' holding thousands of BTC, fueling investor interest.
- Bitcoin surged 12% to $68,300 amid speculation around Venezuela's digital currency activities.
- 14,200 BTC—valued at approximately $960 million—accumulated in unverified wallets linked to Venezuela.
- On-chain data shows a 37% rise in trading volume involving Venezuelan IP addresses.
- U.S. Treasury officials have raised concerns about potential sanctions evasion via digital assets.
- Institutional interest in BTC derivatives has increased, reflecting growing market scrutiny.
- No official confirmation has been issued by the Venezuelan government regarding the alleged operation.
Bitcoin climbed 12% to reach $68,300 in early trading, marking its strongest daily gain in three weeks. The rally coincided with circulating reports of a clandestine Venezuelan government initiative involving the use of digital assets to bypass international financial restrictions. Though no official confirmation has been issued by Caracas, on-chain data shows a sudden spike in transactions between Venezuelan-linked wallets and offshore entities in the Caribbean and Southeast Asia. Market analysts point to a cluster of wallet addresses associated with a previously unidentified entity that has accumulated 14,200 BTC over the past six months. This accumulation, totaling approximately $960 million at current prices, has led to speculation that the holdings may constitute a so-called 'shadow reserve'—a hidden digital asset portfolio intended to support economic stability or enable cross-border liquidity outside traditional banking systems. The surge in BTC activity has drawn attention from regulatory bodies and financial institutions. U.S. Treasury officials have expressed concern over potential use of digital assets for sanctions evasion, while global exchanges reported a 37% increase in trading volume involving Venezuelan IP addresses. Meanwhile, institutional investors have begun assessing exposure to BTC-linked instruments, with several hedge funds signaling interest in related derivatives. The movement underscores growing investor sensitivity to geopolitical developments involving digital assets, particularly in nations under economic pressure. As regulatory scrutiny intensifies, the line between legitimate financial innovation and illicit financial activity becomes increasingly blurred.