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Analysts at Bitfinex assessed the impact of oil production in Venezuela on cryptocurrency mining
Analysts said that oil extraction in Venezuela could open a new phase of mining expansion — especially in regions able to secure long-term contracts for electricity supply. In their view, only a portion of Venezuela’s oil reserves would be enough to have a noticeable impact on energy prices. This could provide meaningful support for miners, whose profitability is declining partly due to rising electricity costs. Following the seizure and capture of Venezuelan President Nicolás Maduro, oil prices fell, which should also benefit miners, as their electricity expenses are linked to oil prices.
However, Bitfinex experts emphasize that a significant increase in oil production in Venezuela will take years. The pace of the process will depend on how the United States manages the political transition in the country and the sanctions regime. Analysts believe that it could take up to ten years to reach full-scale development of Venezuela’s oil reserves. Restoring the country’s status as a major oil producer would require more than $100 billion in infrastructure investments.
At the same time, Bitfinex notes that overall cryptocurrency prices “are more likely to be driven not by energy-market fundamentals, but by shifts in macroeconomic risk appetite, volatility, and positioning across different assets.”
In the 1970s Venezuela produced around 3.5 million barrels per day — roughly 7% of global oil output. Today that figure has dropped to 1 million barrels. Currently the only major U.S. oil company operating in Venezuela is Chevron. U.S. President Donald Trump, however, is pushing for other large players to enter the country’s market as well.
Earlier, analysts at Lookonchain spotted unusual activity on the Polymarket prediction platform: three crypto addresses earned their owners an impressive profit of $630,484. The users placed successful bets on the removal of President Maduro from power just hours before the politician was actually detained by U.S. special forces.
