Cryptocurrency markets showed renewed strength on Monday, with Bitcoin leading gains after U.S. military operations in Venezuela and a rebound in ETF inflows across major digital assets. Analysts point to renewed institutional demand and geopolitical developments as key drivers of the rally.
Spot ETF inflows signal growing institutional demand
U.S. spot Bitcoin ETFs recorded $355 million in net inflows following a week of withdrawals, led by BlackRock’s IBIT and supported by Ark, 21Shares, and Fidelity products. Ether, XRP, Solana, and Dogecoin ETFs also posted net inflows, reflecting broader participation in crypto-linked funds despite mixed price action in 2025.
Market participants anticipate continued ETF expansion in 2026 as new products are filed and regulators provide clearer guidance on digital asset exposure.
Venezuela operation drives risk-on sentiment
Over the weekend, U.S. forces conducted a military operation in Venezuela, capturing President Nicolás Maduro and his wife, with reports of explosions in Caracas and surrounding areas. President Trump indicated that the U.S. would assume control of Venezuela’s oil industry, contributing to a decline in energy prices. Cryptocurrency markets remained resilient, with marginal gains during Monday morning trading in Asia.
U.S. and European equities are expected to reflect the geopolitical developments once trading resumes.
Economic calendar and labor data in focus
Investors will also watch key U.S. economic releases this week. Tuesday sees December’s ISM Manufacturing PMI, followed by ADP Nonfarm Employment data and November’s JOLTS Job Openings on Wednesday. The week concludes with the December Jobs Report and Consumer Sentiment on Friday.
“Softening in the labor market has really given the Fed good cover to change their outlook about reducing rates,” said Eric Kuby, chief investment officer at North Star Investment Management. The data will be closely monitored for signals on the Federal Reserve’s future policy decisions.
Bitcoin leads broader crypto gains
Total cryptocurrency market capitalization rose Monday, reaching its highest level since early December. Bitcoin led early gains in Asian trading before a slight pullback, while Ethereum posted multi-week highs. XRP, Dogecoin, Chainlink, Stellar, and Hyperliquid also recorded gains, highlighting broad-based strength across digital assets.
Ready to start trading Forex? Join iXBroker today and kick-start your trading journey now!
