Geopolitical Tensions and Trade Talks Spark Volatility; Bitcoin Briefly Tops $97K as ADA Leads Altcoin Gains
Crypto markets are bracing for increased volatility as escalating geopolitical tensions and global economic uncertainty drive investor sentiment.
Bitcoin briefly rallied past $97,000 late Tuesday before pulling back to $96,500 during Asian trading hours on Wednesday. The dip came after India launched airstrikes in Pakistan, escalating weeks of rising tension in the region.
Meanwhile, optimism surrounding an upcoming U.S.–China trade meeting had initially lifted risk assets following the U.S. market close on Wednesday. However, that momentum faded early Thursday after details emerged of India’s military action under “Operation Sindoor.”
Analysts expect continued volatility in the days ahead, with geopolitical unrest weighing on risk appetite — although some view it as a potential long-term tailwind for Bitcoin, widely regarded as a hedge against global instability.
“Market volatility is spiking as Bitcoin briefly hits $97K amid intensifying India–Pakistan conflict,” said Nick Ruck, director at LVRG Research, in a message to CoinDesk. “This comes alongside developments in U.S.–China trade negotiations. The upside surprised many, especially as investors had begun scaling back risk ahead of the Fed’s upcoming rate decision.”
Ruck added that the combination of geopolitical risk and macro uncertainty could propel Bitcoin to new highs.
Among altcoins, Cardano’s ADA led major tokens with a 3% gain over the past 24 hours, extending Tuesday’s rise. Dogecoin (DOGE), XRP, BNB, and Ether (ETH) saw modest increases under 2%, while Bitcoin Cash (BCH) and Litecoin (LTC) outperformed with double-digit gains of up to 10%.
The CoinDesk 20 Index (CD20), which tracks the largest and most liquid crypto assets, rose by nearly 2%, reflecting broad-based strength.
Some traders pointed to on-chain activity as an additional driver of Bitcoin’s strength. Ryan Lee, chief analyst at Bitget Research, noted a sharp uptick in active wallet addresses, now at a six-month high — often interpreted as a sign of growing market engagement.
“Bitcoin’s move into the $87,500 to $97,500 range is underpinned by rising demand and increased network activity,” Lee told CoinDesk. “If current metrics continue aligning, a breakout toward $100,000 could be in sight.”
Lee also pointed to broader market factors worth watching, including Bitcoin dominance, which is nearing 55%, and hash rate growth, both of which suggest sustained strength in BTC.
“Ethereum, by contrast, remains range-bound between $1,600 and $1,900,” Lee added, citing fewer bullish catalysts and a more cautious capital rotation into altcoins.
