Bitcoin Dips Below $97K Amid India-Pakistan Tensions, ADA Leads Gains

What to Know

• Bitcoin surged past $97,000 but faced immediate selling pressure, dropping to $96,500.
• Cardano’s ADA led altcoin gains with over 3% in the last 24 hours.
• Geopolitical tension and the upcoming FOMC meeting are driving market volatility.

Bitcoin Retreats After Brief Surge Above $97K

Bitcoin (BTC) experienced a sudden spike above $97,000 late Tuesday, only to face immediate resistance that pushed the price back to $96,500 during Wednesday’s Asian trading hours. The brief rally and subsequent pullback were triggered by growing geopolitical tensions, particularly India’s recent military actions in Pakistan under “Operation Sindoor.”

Market watchers note that geopolitical risks often send investors fleeing riskier assets in favor of safe-haven alternatives. Bitcoin, however, is increasingly being perceived as a macroeconomic hedge, especially during periods of political instability and financial uncertainty. As a result, traders are bracing for continued volatility in the crypto markets.

U.S.-China Trade Talks and the FOMC Meeting Fuel Uncertainty

Alongside regional conflict, markets were temporarily buoyed by optimism surrounding a planned meeting between U.S. and Chinese officials regarding tariffs. Risk assets, including equities and cryptocurrencies, saw a brief lift before sentiment was shaken again by India’s intensified military action.

The timing of these events is particularly sensitive, as global markets are also on edge ahead of the upcoming FOMC meeting, where the Federal Reserve is expected to discuss interest rate changes. Traditionally, such meetings spark price fluctuations across financial markets. Traders have begun de-risking ahead of the announcement, although Bitcoin’s recent rally appears to defy that norm.

Read More: How the Federal Reserve’s Rate Cuts Impact Bitcoin and the Broader Cryptocurrency Market

Bitcoin as a Hedge in Volatile Times

Bitcoin’s price movement in recent weeks has increasingly been tied to broader economic and geopolitical developments. As traditional financial systems face instability, Bitcoin continues to attract interest as an alternative store of value. The rise in price toward $97K and strong whale accumulation hint at renewed institutional confidence.

In addition to the geopolitical backdrop, rising wallet activity is contributing to the narrative that Bitcoin may be headed toward a new all-time high. A noticeable increase in active addresses suggests renewed interest in the network, which some analysts see as a leading indicator of potential bullish momentum.

Cardano’s ADA Outperforms as Altcoins Lag

While Bitcoin dominated headlines, Cardano’s ADA quietly led altcoin gains with a 3% increase over the past 24 hours. The smart contract platform’s momentum outpaced other major cryptocurrencies including Dogecoin (DOGE), XRP, BNB, and Ethereum (ETH), each of which posted gains below 2%.

Legacy cryptocurrencies such as Bitcoin Cash (BCH) and Litecoin (LTC) saw stronger moves, gaining up to 10% during the same period. This suggests a possible trend of capital rotation, where investors move funds into older, undervalued projects during times of broader market uncertainty.

Bitcoin Network Activity Signals Growing Momentum

Analysts are also paying attention to underlying blockchain metrics to gauge future price direction. A recent surge in active Bitcoin addresses, now at a six-month high, points to increasing network usage and investor participation. Historically, such trends precede significant price moves.

Bitcoin dominance—the share of the total crypto market cap held by BTC—is nearing 55%, a level often associated with bullish market phases. Rising hash rates further confirm increased mining activity, which generally reflects growing confidence in the asset’s long-term viability.

Ethereum Continues to Lag Behind Bitcoin

Ethereum, on the other hand, remains confined within a narrow range between $1,600 and $1,900. Without clear catalysts or strong inflows, ETH’s momentum remains subdued compared to Bitcoin’s. Cautious sentiment and risk-off positioning may be limiting upside potential, as traders hold back on committing large capital inflows into altcoins.

The divergence between Bitcoin and Ethereum performance also indicates that traders are being more selective with their bets, favoring assets viewed as stronger macro hedges.

Looking Ahead: Key Drivers to Watch

As market participants look ahead, several factors could influence crypto price action:

• FOMC Rate Decision: Any surprise in the Federal Reserve’s rate policy could swing both crypto and traditional markets.
• Geopolitical Events: Continued tensions between India and Pakistan, or developments in U.S.-China relations, may further stoke volatility.
• On-chain Metrics: Continued rise in active Bitcoin addresses and mining activity could support bullish momentum.
• Dominance Trends: Bitcoin dominance rising further could signal a continued preference for BTC over altcoins.

In summary, while geopolitical and macroeconomic factors are creating a cloud of uncertainty, Bitcoin and selected altcoins like ADA are displaying strength. Traders should prepare for continued turbulence, but with the potential for major upside if key resistance levels are broken and sentiment continues to improve.