Bitfinex: U.S. Involvement in Venezuelan Oil Could Ease Energy Cost Pressures, Benefiting Bitcoin Mining Profits

Odaily News Bitfinex analysts stated that if U.S. companies enter Venezuela to develop its vast crude oil reserves, it could potentially lower energy prices in the medium to long term, thereby improving the profitability of Bitcoin miners. The analysis points out that cheaper and more abundant energy supply is expected to enhance miner profit margins and could drive a new wave of mining expansion, especially in regions where long-term power contracts can be secured.

Bitfinex believes that even utilizing only a small portion of Venezuela's 303 billion barrels of crude oil reserves could have a substantial impact on the energy market, providing relief for miners currently under pressure due to the Bitcoin price correction, rising mining difficulty, and increasing electricity costs. However, the analysis also notes that a substantial recovery in Venezuela's crude oil production capacity will still take many years, with its progress dependent on political transitions and sanctions policy arrangements. Overall, the impact of energy changes on the crypto market remains a secondary factor, with price trends more likely to be dominated by macro risk appetite and cross-asset allocation. (Cointelegraph)