Bitcoin Sees Selling at $97K, Cardano’s ADA Leads Majors Gains Ahead of FOMC Meeting
With just one week left, the cryptocurrency market witnessed Bitcoin hitting $97,000 and then retracting to $96,500 amidst rising tensions between India and Pakistan. These escalating geopolitical conflicts have investors on edge as they navigate through the volatile landscape.
The situation was further complicated by a U.S.-China trade meeting that initially boosted risk assets but lost momentum following India’s military operation dubbed “Operation Sindoor.” Traders are bracing for continued market turbulence, turning to Bitcoin as a safe haven against the uncertainties stemming from global geopolitical and macroeconomic risks.
As regional tensions escalate, traders anticipate heightened volatility with cautious optimism for Bitcoin's upward trajectory. The recent surge above $97,000 signals potential for a breakthrough towards $100K driven by increasing wallet activity and positive market indicators aligning in favor of Bitcoin's bullish case.
In light of these developments, the forthcoming days are poised to be crucial for investors navigating through this high-stakes environment riddled with uncertainty.
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Bitcoin Sees Selling at $97K, Cardano’s ADA Leads Majors Gains Ahead of FOMC Meeting
Market volatility may soar as a regional tussle between India and Pakistan intensifies and the U.S.-China trade war looms.
- Bitcoin surged past $97,000 before sliding to $96,500 amid escalating tensions between India and Pakistan.
- A planned U.S.-China trade meeting initially boosted risk assets, but gains reversed with India's 'Operation Sindoor.'
- Traders anticipate continued volatility, viewing Bitcoin as a hedge against geopolitical and macroeconomic risks.
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.
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 reported, but those gains reversed as news of India’s “Operation Sindoor” emerged in the early hours.
Traders expect to see more volatility in the days ahead as the regional tussles further damage risk-taking sentiment among traders, though eventually leading to a move higher as bitcoin is perceived as a hedge.
“This is in addition to plans by the US and China to discuss a trade deal this week. 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.
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 consider a sign of oncoming volatility.
“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.
