Bitcoin surged over $97,000 late Tuesday, sliding to $96,500 in Asian time on Wednesday as India has launched airstrikes in parts of Pakistan and has intensified tensions over the past few weeks.
A planned meeting to discuss US and China tariffs, as reported, risk assets have been sent high in hours since the US stock market closed on Wednesday, but those profits have been reversed as news of India’s “Operation Sindore” emerged early.
Traders hope to see more volatility in the coming days as regional tasles further undermine risk-taking feelings among traders, but ultimately leads to a higher movement as Bitcoin is perceived as a hedge.
“Market volatility is rising as Bitcoin surges to $97,000 from the fierce conflict between India and Pakistan,” said Nick Ruck, director of LVRG Research.
“This added to a plan to discuss this week’s trade contract between the US and China. This upward move took investors out of risk stolen before the Fed decided on changes in interest rates, so geopolitical uncertainty and macroeconomic volatility could send Bitcoin to a new high as a hedge against greater market risk,” Lac added.
Cardano’s ADA has increased its profits from Tuesday, earning profits among the majors with a 3% bump in the last 24 hours. Dogecoin (Doge), XRP, BNB and Ether (ETH) in the BNB chain added under 2%, while Legacy Sheet Kun Bitcoin Cash (BCH) and Litecoin (LTC) surged by 10%.
Broad-based Coindesk 20 (CD20), a liquid index that tracks the largest tokens by market capitalization, has added nearly 2%.
Meanwhile, some traders said the bitcoin surge in the past few weeks has been linked to active addresses spikes.
“Bitcoin’s recent rally at $87,500, going back to the $97,500 range (now six months high) pointing to increased demand and updated network activity, this is the recent rally Bitcoin rally of $87,500.
“The surge supports bullish cases of potential breakouts to $10,000, but confirmation relies on adjusting multiple metrics,” Lee said, reflecting a commentary from a different analyst from last week.
“Traders should also monitor macro terms, control of Bitcoin, and rising hashrates, which are currently approaching the 55% mark. Meanwhile, Ethereum trades in a narrow range of $1,600-1,900, lags behind BTC’s momentum.