Bitcoin has surpassed the $97,500 mark against the backdrop of escalating armed conflict between India and Pakistan.
On the night of May 7, 2025, the cryptocurrency market experienced a sudden jump: the value of Bitcoin exceeded the $97,500 mark, which was a reaction to the escalation of the military conflict between Pakistan and India, as well as positive signals regarding the negotiations between the United States and China on the abolition of trade tariffs. Despite a minor correction since its peak, the major cryptocurrency remains high this morning at around $96,352, according to encrypted data.
After reports of hostilities between the two nuclear powers, India and Pakistan, investors have traditionally started pulling assets out of markets they consider risky in the face of instability and looking for alternative “quiet havens.” Bitcoin, which is increasingly seen as a means of preserving capital during periods of geopolitical turbulence, immediately reacted with a rapid growth.
The same applies to news from the trade front: expectations of a possible softening of the customs policy between the United States and the People’s Republic of China added optimism to global financial markets, which also contributed to the inflow of investments in risky assets — in particular, cryptocurrencies.
In response to Bitcoin’s growth, its dominance in the crypto market also increased sharply, reaching 65.27%, the highest level since January 2021. This means that Bitcoin currently holds most of the capitalization of the entire crypto market.
In parallel with BTC, other top cryptoassets also showed growth. Ethereum held above the $1,800 mark, although its growth was less dynamic. Cardano (ADA) registered the biggest increase among the leading assets, which caused special interest of traders.
Against the backdrop of volatility, the volume of liquidations of futures contracts also increased significantly. According to CoinGlass, positions worth about $315 million were liquidated during the day, which indicates the high activity of speculators and a change in sentiment among traders.
Another indicative indicator is the index of fear and greed, which jumped from 49 to 53 points during the day. This indicates the transition of investors’ mood from caution to moderate optimism, although the market has not yet entered the “greed” zone.
A combination of factors — military tensions in Asia, improving trade expectations between the U.S. and China, and the traditional perception of bitcoin as a store of value — has catalyzed strong momentum in the cryptocurrency market. In the short term, further dynamics will depend on the development of the conflict between India and Pakistan, the progress of negotiations between Washington and Beijing and, probably, the reaction of the stock markets to these events.
