Bitcoin price soars to $97,000: market sentiment
Kyiv • UNN
Bitcoin surged to $97,000 due to Indian airstrikes in Pakistan but then fell to $96,500. Traders expect volatility due to regional tensions.
Bitcoin rose in price above $97,000 on Tuesday evening, and then fell to $96,500 in the early hours of Wednesday in Asia, amid reports that India carried out air strikes in some parts of Pakistan, which has increased the tension of the last few weeks, CoinDesk reports, UNN writes.
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A planned meeting to discuss US and Chinese tariffs led to an increase in risky assets in the hours after the US stock market closed on Wednesday, as reported, but this growth subsided when news of the Indian "Sindur Operation" appeared early in the morning.
Traders expect to see great volatility in the coming days, as regional clashes further undermine traders' propensity to take risks, although they ultimately lead to growth as bitcoin is perceived as a hedge.
"Volatility in the markets has risen sharply as bitcoin has jumped to $97,000 due to the escalating conflict between India and Pakistan," said Nick Ruck, director of LVRG Research, in a CoinDesk message in Telegram.
"This is in addition to US and Chinese plans to discuss a trade agreement this week. This upward movement came as a surprise, amid investors reducing risks ahead of the Fed's decision to change interest rates. Geopolitical uncertainty and macroeconomic volatility could bring bitcoin to new highs as a hedge against greater market risks," Ruck added.
ADA Cardano led the growth among major currencies with a 3% increase in the last 24 hours, increasing from Tuesday. Dogecoin (DOGE), XRP, BNB and ether (ETH) BNB Chain added less than 2%, while traditional tokens Bitcoin Cash (BCH) and Litecoin (LTC) rose by 10%.
CoinDesk 20 (CD20) - a liquid index that tracks the largest tokens by market capitalization - added almost 2%.
Meanwhile, some traders said that bitcoin's growth in recent weeks has been linked to a sharp increase in active addresses - an indicator of wallet activity that some consider a sign of impending volatility.
"Bitcoin's recent rise to $87,500 - a sharp increase in active addresses confirms the $97,500 range (now a 6-month high), indicating increasing demand and renewed network activity," Ryan Lee, chief analyst at Bitget Research, CoinDesk, said.
"This growth confirms an optimistic forecast for a potential breakthrough to $100,000, although confirmation depends on the alignment of several indicators," Lee said, echoing separate comments from analysts last week.
"Traders should also monitor macroeconomic conditions, bitcoin dominance, which is currently approaching 55%, and hash rate growth. Meanwhile, Ethereum is trading in a narrower range of $1,600-$1,900, still lagging behind BTC's performance, and sentiment is more restrained amid fewer catalysts and a cautious rotation of capital into altcoins," Lee added.
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