Bitcoin price volatility intensified late Tuesday as the cryptocurrency briefly surged past $97,000 before slipping to around $96,500 during Asian trading hours on Wednesday. The sudden price swing followed reports of India launching airstrikes in Pakistani territories under “Operation Sindoor,” escalating long-standing geopolitical tensions.
Bitcoin Price Volatility Spikes Amid Geopolitical Escalation
Risk assets initially rallied overnight following the announcement of a planned meeting between U.S. and Chinese officials to discuss trade tariffs. However, those gains quickly reversed in early Wednesday trading as geopolitical headlines took centre stage, sparking uncertainty across global markets.
“Volatility in the markets is soaring as bitcoin surges to $97K from the intensifying conflict between India and Pakistan,” said Nick Ruck, director at LVRG Research, in a Telegram message to CoinDesk.
Ruck added, “This is happening alongside anticipation of a U.S.-China trade agreement. The surprise move came as investors were de-risking positions ahead of the upcoming Federal Reserve interest rate decision. Geopolitical instability and macroeconomic volatility could push Bitcoin to new highs as traders turn to it as a hedge.”
Cardano Gains and Altcoin Market Reactions
Cardano’s ADA stood out among major cryptocurrencies, posting a 3% gain over the past 24 hours and extending its rally from earlier in the week. Other notable tokens such as Dogecoin (DOGE), XRP, BNB Chain’s BNB, and Ether (ETH) also saw modest increases below 2%, while legacy tokens like Bitcoin Cash (BCH) and Litecoin (LTC) climbed by up to 10%.
The CoinDesk 20 Index (CD20), which tracks the largest cryptocurrencies by market capitalisation, rose nearly 2% during the same period, indicating broad-based gains across the digital asset space.
On-Chain Metrics Support Continued Bitcoin Price Volatility
Analysts noted a surge in active Bitcoin wallet addresses—a key on-chain metric often used to gauge network activity and potential price movements. “Bitcoin’s recent rally to the $87,500–$97,500 range is backed by a spike in active addresses, now at a six-month high, reflecting increased demand and renewed network momentum,” said Ryan Lee, chief analyst at Bitget Research.
Lee suggested that a breakout towards the psychological $100,000 level remains possible, contingent on several market indicators aligning. He also pointed to rising Bitcoin dominance—approaching 55%—and elevated hash rates as technical signs of strengthening market position.
Ethereum Lags as Bitcoin Maintains Momentum
“While Bitcoin leads the charge, Ethereum remains in a tighter range between $1,600 and $1,900,” Lee noted. “Sentiment around ETH appears subdued, with fewer short-term catalysts and cautious rotation into altcoins.”
Final Thoughts on Bitcoin Price Volatility and Market Trends
Bitcoin’s price action continues to reflect the market’s sensitivity to global events and central bank policy decisions. With the Federal Reserve’s upcoming announcement and escalating geopolitical risks, traders should brace for more volatility while watching key indicators for potential breakout scenarios. Meanwhile, Cardano’s ADA emerges as a standout performer in a mixed altcoin market.