The United States attacks Venezuela, is it bullish or bearish for US stocks and cryptocurrency?

Many brothers are quite confused about the impact of localized wars on US stocks and cryptocurrency, and their understanding is often at odds with the actual situation.

The understanding king is very selective, choosing to launch an attack on Venezuela on Saturday.

First of all, you should know that no one cares more about keeping US stocks strong than Trump, especially with the midterm elections in 2026.

It’s a bit of a worldview shock; localized geopolitical conflicts are actually positive for US stocks, otherwise, the understanding king wouldn't be stoking fires all over the world.

Localized wars will only scare US stocks and cryptocurrency in the short term, but in the medium to long term, they are positive—

Why do I say this?

The underlying logic is based on two points—

1. Behind the war is strong fiscal support. Once a war starts, military spending will flow like a privileged channel, bypassing congressional wrangling and directly injecting into the economy, resulting in the strongest fiscal stimulus. This money will ultimately flow into the industry chain and stock market.

2. Secondly, the capital return driven by 'fear.' During a rate-cutting cycle, to prevent capital that was attracted by high interest rates from flowing out, the United States will have a strong motivation to actively create geopolitical friction, using this fear to keep capital in the US for safety. To verify this, everyone can pay close attention to whether the dollar and US Treasury prices strengthen on Monday.

The effect of creating geopolitical conflicts is very similar to QE, as it can both release liquidity and lower US Treasury yields, achieving two objectives with one action.

Follow Old Xu, who will continue to track the market script for everyone.
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