- Bitcoin surged to $97,260 after India launched a missile strike on Pakistan, triggering $734 million in short liquidations.
- Markets rebounded as U.S. diplomatic efforts eased fears of broader conflict, restoring bullish momentum.
Bitcoin price soared to $97,260 on Wednesday following a dramatic $730 million short squeeze, triggered by a sudden missile strike by India on Pakistan. The attack on nine strategic locations, including in disputed Kashmir, jolted global markets and sparked sharp volatility across crypto and traditional assets.
Initial reports of the strike sent BTC tumbling below $94,000 during early Asian trading, as investors reacted to fears of regional war. However, data from Coinglass revealed that Bitcoin smashed through a major resistance wall near $95,600, liquidating $734 million in short positions in the process.
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The geopolitical shockwaves momentarily fractured bullish momentum, but a swift rebound followed as traders digested news of Washington’s diplomatic intervention. Former President Donald Trump called for calm, saying, “They’ve been fighting for a long time. I just hope it ends very quickly.” U.S. Secretary of State Marco Rubio confirmed direct talks with both India and Pakistan were underway, softening the mood on Wall Street and in crypto markets.
Bitcoin’s intraday recovery coincided with a sharp rotation back into risk assets. Coinglass data confirmed bulls reclaimed dominance in the derivatives market, with $2.14 billion in long positions now outpacing short-side leverage at $2.06 billion.
The reclaim of the $95,600 level was seen as a crucial psychological victory for Bitcoin bulls, as it aligned with multiple recent pullbacks. As shorts were forced to exit, a cascade of liquidations fueled BTC’s rally back toward previous highs.
With the dust beginning to settle and institutional demand remaining steady, Bitcoin now eyes a potential retest of the $98,200 peak. If diplomatic efforts hold and conflict escalation is avoided, analysts suggest the $100,000 milestone may soon enter the crosshairs.
While the India-Pakistan standoff underscores Bitcoin’s sensitivity to geopolitical unrest, it also highlights its rapid reflexes as a global risk indicator—both a haven and a hazard in times of turmoil.