Bitcoin (BTC) Surged Above $97,000, Then Dipped Below $96,000 as India and Pakistan Conducted Airstrikes

Bitcoin surged above $97,000 late Tuesday, then slid to $96,500 in Asian hours Wednesday as India conducted airstrikes in parts of Pakistan to intensify tensions from the past few weeks.

Bitcoin price slid above $97,000 late Tuesday, then slid to $96,500 in Asian hours Wednesday as India conducted airstrikes in parts of Pakistan to further intensify tensions from the past few weeks.

A planned meeting to discuss U.S. and China tariffs sent risk assets higher in the hours since the U.S. stock market closed on Wednesday, as previously reported, but those gains reversed as news of India’s “Operation Sindoor” emerged in the early hours.

Traders expected to see more volatility in the days ahead as the regional tussles further damaged risk-taking sentiment among traders, though eventually leading to a move higher as bitcoin is perceived as a hedge.

“Volatility in the markets is surging as bitcoin price soars to $97K from the intensifying conflict between India and Pakistan, in addition to plans by the US and China to discuss a trade deal this week,” LVRG Research director Nick Ruck told CoinDesk in a Telegram message.

“This upward movement came as a surprise, as investors were de-risking positions ahead of a decision by the Fed about changing interest rates. Geopolitical uncertainty and macroeconomic volatility may send Bitcoin to new highs as a hedge against greater market risks,” Ruck added.

In other developments, Cardano’s ADA led gains among majors with a 3% bump in the past 24 hours, adding to gains from Tuesday. Dogecoin (DOGE), XRP, BNB Chain’s BNB and ether (ETH) added less than 2%, while legacy tokens Bitcoin Cash (BCH) and Litecoin (LTC) surged as much as 10%.

The broad-based CoinDesk 20 (CD20), a liquid index tracking the largest tokens by market cap, rose nearly 2%.

Meanwhile, some traders said bitcoin’s surge in the past weeks was coupled with a spike in active addresses – a metric of wallet activity that some considered a sign of oncoming volatility.

“Bitcoin’s recent rally to the $87,500-$97,500 range (now at a 6-month high) a spike in active addresses backs is a sign of rising demand and renewed network activity,” Bitget Research chief analyst Ryan Lee told CoinDesk in a Telegram message.

This surge supports a bullish case for a potential breakout toward $100K, though confirmation depends on multiple indicators aligning,” Lee said, mirroring separate analyst commentary from the past week.

“Traders should also monitor macro conditions, Bitcoin dominance, currently nearing the 55% mark, and rising hash rates. Meanwhile, Ethereum trades in a narrower $1,600-$1,900 range, still lagging behind BTC’s momentum, with sentiment more muted amid fewer catalysts and cautious capital rotation into altcoins,” Lee added.