Bitcoin surged above $97,000 late Tuesday, then slid to $96,500 in Asian hours Wednesday as India conducted airstrikes in parts of Pakistan, intensifying tensions from previous weeks. The volatile nature of the cryptocurrency market reflects ongoing geopolitical instability that can significantly impact trader sentiment.
A planned meeting to discuss tariffs between the U.S. and China had previously sent risk assets higher after the U.S. stock market closed on Wednesday. However, these gains quickly reversed as news of India’s ‘Operation Sindoor’ emerged, reigniting concerns over regional conflicts.
Traders are anticipating increased volatility in the coming days as ongoing tensions contribute to a cautious risk environment. Despite this, there is an underlying expectation that Bitcoin could ultimately benefit from its status as a hedge against economic uncertainty.
“Volatility in the markets is soaring as Bitcoin surges to $97K from the intensifying conflict between India and Pakistan,” said Nick Ruck, director at LVRG Research, in a recent conversation with CoinDesk. “This upward movement came as a surprise, as investors were de-risking positions ahead of a decision by the Fed regarding interest rates. Geopolitical uncertainty and macroeconomic volatility may push Bitcoin to new highs as a hedge against market risks,” he added.
Among major cryptocurrencies, Cardano’s ADA led the gains with a 3% increase over the past 24 hours. Dogecoin (DOGE), XRP, BNB Chain’s BNB, and ether (ETH) saw gains of less than 2%, while legacy tokens Bitcoin Cash (BCH) and Litecoin (LTC) surged by as much as 10%. The broad-based CoinDesk 20 (CD20), an index tracking the largest tokens by market cap, added nearly 2%.
Furthermore, some traders noted that Bitcoin’s recent surge has coincided with a spike in active addresses—an indicator of wallet activity that is sometimes viewed as a precursor to volatility. Ryan Lee, chief analyst at Bitget Research, remarked, “Bitcoin’s recent rally to the $87,500 range, accompanied by a rise in active addresses, reinforces prospects for the $97,500 range (now at a 6-month high) indicating rising demand and renewed network activity.”
Lee elaborated that this surge supports a bullish outlook for a potential breakout toward $100K, although confirmation will depend on various market indicators aligning. He advised traders to keep an eye on macroeconomic conditions, Bitcoin’s dominance—which is currently nearing the 55% mark—and rising hash rates. Meanwhile, Ethereum is trading within a tighter range of $1,600 to $1,900, still lagging behind Bitcoin’s momentum, with sentiment remaining muted due to fewer catalysts and cautious capital rotation into altcoins.
