India-Pakistan War Continues, Is Crypto Market Rally At Risk?
Highlights
- Bitcoin is leading a potential reversal in the crypto market as new uncertainties emerge
- The India-Pakistan war is likely to offset the market with its weeklong gains
- Inconclusive trade negotiation between US and China is also weighing on sentiment
The broader crypto market is still under intense bearish uncertainty amid the confirmed escalations of the India-Pakistan war. After weeks of aggression between both nations, a ceasefire was reached barely 24 hours ago. However, this ceasefire did not hold as India has accused Pakistan of a deadly violation of the terms. With this escalation, it remains to be seen whether Bitcoin (BTC) and top altcoins in the crypto market will reverse their gains.
Crypto Market Slipoff Ahead?
According to an Aljazeera report, explosions were heard hours after the agreed-upon truce. It was reported that Pakistan bombed some of the Indian-controlled parts of Kashmir. Following this trend, India’s Military officials have been instructed to deal with any violations moving forward.
“This is a breach of an understanding arrived at earlier today … We call upon Pakistan to take appropriate steps to address these violations and deal with the situation.” India’s Foreign Secretary Vikram Misri revealed in a statement.
As reported earlier today, both countries agreed to a ceasefire that initially boosted investor confidence, fueling a sustained crypto market rally. However, with this current escalation, the same erasure of gains accrued by Bitcoin and other risk-on assets might be in the market.
Bitcoin Price Already Correcting on India-Pakistan Update
Following the latest update in the India-Pakistan war, the combined crypto market capitalization has dropped by 0.11% in 24 hours to $3.31 trillion. Bitcoin price is also seeing a slight slip-off as of writing, down by 0.26% to $103,217.
Per an earlier CoinGape report, Bitcoin brushed off $104,000 as broader optimism was sustained. However, despite the corrections in BTC, other top altcoins are still maintaining their daily growth trends.
Ethereum is up 6.98% to $2,493.3, and XRP has retained 2.68% of its growth trend to $2.416. Judging by the growth trajectory of altcoins over the past month, a correction is looming. Notably, this may be tied to the India-Pakistan war if it lingers.
US-China Trade War and Uncertainty
The US-China trade war is another event that may offset the market. With delegates of both countries locked in negotiations, which have now extended to day 2, the crypto market and other financial ecosystems are watching to see if a major concession will be reached.
Beyond this macro and geopolitical strain, the latest Bitcoin price watch teases a possible $120,000 breakout. This forecast hinges on other factors. These include the embrace by institutional investors as BlackRock enters staking conversations with the US SEC.
With BlackRock leading the move, other top asset managers may also join the trend, adding to the upside for BTC and associated altcoins.
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