On May 6, 2025, India launched missile strikes targeting terrorist infrastructure in Pakistan, affecting the cryptocurrency market. This article explores the implications of the conflict on the economy and crypto realm.
India's Missile Strikes on May 6
India initiated 'Operation Sandhoor' on May 6, 2025, launching missile strikes against terrorist infrastructure in Pakistan in response to a terror attack in Pahalgam. The Indian Ministry of Defense characterized the strikes as measured. Pakistan's military, represented by Major General Ahmed Sharif Chaudhry, indicated preparedness to retaliate but has not confirmed further escalation.
Bitcoin and Ethereum Prices Drop Amid Conflict
The conflict sparked a global risk-off sentiment, causing investors to move away from volatile assets such as Bitcoin and Ethereum. This resulted in noticeable market sell-offs and price fluctuations. With BTC and ETH prices dropping, traders directed their focus towards stablecoins like USDT and USDC, reflecting a typical response during heightened market instability driven by geopolitical conflicts.
Historic Patterns in Crypto Issued by India-Pakistan Strife
Past India-Pakistan conflicts show similar patterns, where demand for digital assets rose as a hedge against local economic instability. Major crypto assets traditionally experience volatility during such macro events. Experts suggest potential stabilization as seen in historical trends, with assets possibly recovering after initial volatility. These developments underscore the influence of geopolitical events on market dynamics.
The escalation of conflict between India and Pakistan highlights the connection between geopolitical events and the state of the cryptocurrency market. Experience shows that such events can cause short-term volatility while also opening up opportunities for recovery.
