Bitcoin Holds $90K Amid Venezuela Crisis, Morgan Stanley Files Crypto ETFs

The cryptocurrency market’s relative calm was shattered over the weekend by a significant geopolitical event: U.S. military action in Venezuela leading to the capture of its president. Initially, this uncertainty pushed Bitcoin from a reclaimed $90,000 level down to $89,300. However, the market’s reaction flipped following official U.S. confirmation of the strikes and subsequent controversial comments from former President Donald Trump regarding Venezuela’s future. BTC not only recovered but embarked on a surge that peaked at just under $95,000 on Tuesday morning, its highest price in nearly two months.

This rally proved short-lived as bearish pressure intercepted the move, driving the price down in subsequent days to a low below $89,500. A swift $2,000 rebound followed, leaving Bitcoin trading just above $90,000 by the week’s end, netting a minor 1.2% weekly increase. Analysts cited in the source material have labeled this recovery to and stabilization above $90,000 as “structurally healthy,” suggesting underlying strength despite the price whipsaw. Further volatility was anticipated with a pending U.S. Supreme Court decision on Trump-era tariffs.

The most consequential development for long-term market structure emerged from traditional finance. Banking giant Morgan Stanley submitted filings with the U.S. Securities and Exchange Commission (SEC) to launch exchange-traded funds (ETFs) for Bitcoin and Solana (SOL), followed a day later by filings for Ethereum (ETH) ETFs. This move by a multi-trillion-dollar institution represents a monumental step in institutional adoption, signaling deepening mainstream acceptance of crypto assets beyond just Bitcoin.

While Bitcoin’s dominance slipped below 57%, several major altcoins posted stronger weekly performances. Ripple’s XRP led the pack with an 11% surge, reaching as high as $2.40, despite a reported snap in the record green streak of spot XRP ETFs that saw over $40 million in outflows. Other notable gainers from the larger capitalization assets included Solana (SOL), Cardano (ADA), Monero (XMR), Stellar (XLM), Dogecoin (DOGE), and Bitcoin Cash (BCH). The overall cryptocurrency market capitalization stood at $3.180 trillion.

The week was not without its setbacks. The decentralized finance (DeFi) sector witnessed the first major hack of 2026, with Truebit Protocol suffering a loss of over $26.5 million in Ethereum. This incident served as a stark reminder of the persistent security vulnerabilities within the DeFi ecosystem, even as institutional products gain traction.

Meanwhile, macroeconomic narratives intertwined with the week’s events. Prominent analyst Arthur Hayes posited a theory linking the Venezuela situation to potential crypto bullishness. Hayes suggested that former President Trump’s promises to bring Venezuela’s vast oil reserves to global markets could trigger a significant decline in oil prices. He argued that such a development, by altering global liquidity conditions, could prove “very beneficial” for Bitcoin, framing digital assets within a broader commodity and monetary policy context.

Adding to the week’s discourse, an ESG expert pushed back against long-standing environmental criticisms of Bitcoin mining, claiming the process is “a lot cleaner than people believe.” This debate continues to be relevant as institutional investors with ESG mandates consider entering the space. As the market braces for more volatility, the convergence of geopolitical drama, institutional validation, and internal market dynamics underscores cryptocurrency’s increasingly complex role in the global financial landscape.