- Reputed analyst reiterates bearish narrative based on growing global political strife.
- The US has made the first move to secure Venezuela likely for its resources.
- China may move to secure Taiwan, pushing the US to act.
The final quarter of the previous year saw multiple discourse between bearish and bullish analysts who all had differing takes on where the price of the crypto market and its assets would go next. With the same tug-of-war playing out in the New Year, one reputed analyst reiterates bearish narrative based on growing global political strife. His latest market breakdown post explains in detail.
Reputed Analyst Reiterates Bearish Narrative
A reputed crypto analyst shares his latest full market breakdown on Bitcoin (BTC) using in-depth technical and psychological analysis. To highlight, this report differs from the analysts previous reports as it focuses on the growing global political strife, and how this only boosts the analysts expectation on a massive and harsh bear market that he has been expected to play out since Q4 2025.
As we can see from the post above, the analyst begins by explaining how two days ago, the United States started military operations in Venezuela in order to fight for democracy, protect freedom, and preserve human rights. But looking at the move in an objective perspective will revel that Venezuela holds the largest oil reserves on the planet, with over 300 billion barrels, worth more than $17.3 trillion at current market prices, and the eighth largest natural gas reserves in the world, with over 5.7 trillion cubic meters of gas, valued at more than $1.2 trillion at current market prices.
Thus, the analyst states that it is crystal clear to many that the moral arguments used by the United States to enter Venezuela are merely excuses to justify control over those oil and gas reserves. The timing of this move is not random, and the reason why the United States is forcing this now is that China is very likely to invade Taiwan in the coming months. If China invades Taiwan, the US economy would face a massive shock.
NVDA, currently the largest company in the United States, would effectively stop selling chips, and that alone would drag the entire US economy down with it. Unlike what most people think, Nvidia and Apple do not manufacture chips, they only design them. The largest and most important manufacturer in the world is TSMC, Taiwan Semiconductor Manufacturing Company, which is based in Taiwan and runs all of its most advanced operations there.
Growing Global Political Strife Suggests Bearish Action
If China occupies Taiwan, the production of the most advanced chips in the world would stop almost immediately because TSMC facilities are heavily dependent on materials and equipment coming from the United States, and those supply lines would be instantly cut. With no selling comes no revenue, and with no revenue comes no profits. Once profits disappear, valuations collapse.
This would not only affect Nvidia, but every company that depends on advanced chips. This chain reaction would continue until the US economy enters a deep recession. With no products to sell comes no revenue, and with no revenue comes no profit. Investors would then sell equity across the board, and the market would enter a full-blown crisis.
This is why controlling Venezuela’s oil and gas reserves becomes strategic, as it is the fastest way for the United States to replace lost income and preserve geopolitical leverage if the Taiwan scenario unfolds. Taiwan therefore, remains the choke point of the global system. This geopolitical environment only strengthens the analyst’s stance that we are indeed very bearish on the mid-term. Even if China does not invade Taiwan immediately, markets will price the probability of that scenario.
