- India’s military strikes in Pakistan escalate geopolitical tensions, shaking global markets.
- Bitcoin briefly touches $97,300 but faces headwinds amid rising conflict fears.
- Investors shift to gold and the U.S. dollar as safe-haven demand surges.
While Bitcoin has seen improved sentiment due to recent news of renewed trade talks between the U.S. and China, escalating tensions between India and Pakistan now threaten the ongoing crypto uptrend.
India launched military strikes on Pakistan-administered territories, targeting what Indian defense officials described as terror camps. The airstrikes were in response to an April 22 bombing in Pahalgam that killed 26 people, including one foreign national.
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The Pakistani government condemned the strikes, warning of a “measured response if provoked,” raising fears of a potential military escalation between the two nuclear powers. The rising tensions added pressure to global financial markets that were already on edge due to inflation concerns and regulatory uncertainty.
Markets across Asia opened lower following the news. India’s NIFTY 50 fell 2.3%, while Pakistan’s KSE-100 dropped 3.1%. European and U.S. futures followed suit.
Meanwhile, investors fled riskier assets, favoring gold and the U.S. dollar. Gold rose 2.2% to $2,750 an ounce, and the U.S. Dollar Index advanced to 104.50.
Is Crypto Crash Looming?
Earlier today, Bitcoin briefly touched $97,300, continuing its attempt to break through the $100K barrier after its rally stalled last week.
The recent uptrend in crypto markets was fueled by news that U.S. and Chinese officials will hold trade talks this week in Switzerland to de-escalate tensions between the world’s two largest economies. Chinese Vice Premier He Lifeng is expected to attend from May 9–12, alongside U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer.
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However, the escalating conflict between India and Pakistan threatens to derail market optimism. Nonetheless, industry leaders remain confident that the crypto rally is intact.
Binance founder Changpeng Zhao (CZ) recently predicted that Bitcoin could reach $500,000 or even $1 million this bull cycle. Such a surge would bring Bitcoin’s valuation close to gold’s $22 trillion market cap.
Calls for Peace Offer Temporary Relief
While the India-Pakistan conflict raised fears of market instability, the White House confirmed outreach to both governments, urging de-escalation. U.S. President Donald Trump called for peace, encouraging both nations to resolve their disputes diplomatically.
These diplomatic efforts provided brief relief to jittery markets, but volatility is expected to persist if tensions continue to rise.
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