Venezuelan Oil Supply Could Cut BTC Mining Energy Costs, Bitfinex Says
The recent developments around Venezuela’s oil supply could ultimately prove beneficial for BTC mining in the long run, according to analysts at Bitfinex.
Venezuela currently holds the world’s largest proven oil reserves, estimated at over 300 billion barrels, far exceeding the United States’ roughly 35 billion barrels in reserves. This vast resource base positions the country as a potentially major player in global energy markets if production capacity expands.
Bitfinex confirmed the possibility of lower BTC mining energy costs in a recent note provided to . According to the firm, increased oil production in Venezuela could lead to cheaper and more abundant energy, which would directly benefit miners by reducing electricity expenses.
In its notes, Bitfinex analysts stated that BTC mining electricity costs could decline if Venezuela significantly ramps up oil output. This comes at a , whose profitability has already been pressured by the latest , which cut block rewards by half to 3.125 BTC per block.
“Cheaper and more abundant energy would improve miner margins globally and could unlock a new phase of mining expansion, particularly in regions able to secure long-term power contracts,” Bitfinex said.
US Involvement and Production Outlook
Several factors will influence how rapidly and effectively Venezuela’s oil supply can impact global energy prices. One of the most significant is the renewed entry of U.S. companies into the oil-rich country. Although large-scale extraction has not yet begun, former U.S. President Donald Trump reportedly gave approval for American companies to gain a presence in Venezuela and initiate the process.
If production increases and more Venezuelan oil enters the global market, energy prices are expected to ease across multiple regions. This would likely lower the cost of electricity worldwide, including the energy required for BTC mining operations.
However, the impact on electricity prices is not expected to be immediate. Analysts project that it could take several months before increased Venezuelan oil production directly affects energy markets and translates into lower electricity costs for industrial users, including crypto miners.
Potential Impact on BTC Price
Lower energy costs could also have a notable effect on BTC’s price dynamics. With improved profit margins, miners would be under less pressure to trade their BTC holdings to cover operating expenses. This could reduce trade-side pressure in the market and support price stability or further upside.
At present, miners collectively approximately $162.6 billion worth of BTC in their wallets. On a broader time frame, this figure has been trending downward. Between July 14 and now, miners’ reserves in the United States alone have reportedly declined by about $56.1 billion.
However, short-term data presents a more positive outlook. Miner reserves increased from $158.86 billion on January 1 to $162.6 billion at the time of writing, suggesting renewed accumulation.
With less BTC supply entering circulation, the likelihood of reduced tradeing pressure increases. This environment typically supports higher prices, as demand to accumulate remains strong while available supply tightens.
