Bitcoin Pulls Back After Hitting $97K as India–Pakistan Conflict Escalates, ADA Outperforms Majors
Bitcoin surged past the $97,000 mark late Tuesday before giving up gains to trade around $96,500 during Asian hours Wednesday, as markets reacted to a fresh wave of geopolitical risk stemming from India’s military action in Pakistan.
The operation, dubbed “Sindoor,” marks a sharp escalation in tensions between the two nations and triggered a fast shift in global risk sentiment. Earlier optimism from news of upcoming U.S.–China trade negotiations briefly lifted markets, but the mood quickly turned risk-off as headlines of the strikes spread overnight.
“Traders were caught off guard,” said Nick Ruck, director at LVRG Research, in a message to CoinDesk. “Bitcoin’s rally looked like a classic flight to safety, fueled by mounting uncertainty around geopolitics and global policy shifts.”
Ruck noted that the move was particularly striking ahead of the Federal Reserve’s policy meeting, where rate hike expectations had already pushed many traders to the sidelines.
Among altcoins, Cardano’s ADA stood out with a 3% rise over the past 24 hours. XRP, Dogecoin, Ether, and BNB all gained modestly, under 2%, while Litecoin (LTC) and Bitcoin Cash (BCH) posted surprise breakouts, adding up to 10% amid renewed speculative interest.
The CoinDesk 20 Index (CD20), which tracks top-performing digital assets, climbed nearly 2%, signaling strength in large-cap crypto.
Behind the scenes, on-chain metrics suggest growing engagement. Bitcoin active address counts — a key indicator of user activity — are now at a six-month high.
“This kind of network growth typically precedes major price movements,” said Ryan Lee, chief analyst at Bitget Research. “If momentum holds and macro conditions align, we may see Bitcoin test the $100,000 level in the near term.”
Lee added that Bitcoin’s market dominance, now nearing 55%, and rising hash rates reflect increasing confidence in the asset, while Ethereum continues to underperform, locked in a $1,600–$1,900 range with less investor enthusiasm.
“Until we see a catalyst or stronger altcoin rotation, ETH and others may lag BTC’s momentum,” Lee noted.
