Bitcoin Drops to $96,500 After Brief Surge Above $97,000
Bitcoin reached a peak of $97,000 on Tuesday before dropping to $96,500 amid rising geopolitical tensions due to India's airstrikes in Pakistan. This volatility coincided with discussions around U.S.-China tariffs, which had initially boosted risk assets.
Key points include:
- Traders anticipate increased market volatility as regional conflicts impact risk sentiment.
- Nick Ruck from LVRG Research notes that Bitcoin's rise is linked to geopolitical uncertainty and macroeconomic factors, positioning it as a potential hedge.
- Cardano’s ADA led major gains with a 3% increase, while other tokens like Dogecoin, XRP, BNB, and ether saw less than 2% growth. Bitcoin Cash and Litecoin surged up to 10%.
- The CoinDesk 20 index rose nearly 2% overall.
- Increased active addresses indicate rising demand for Bitcoin, supporting a bullish outlook toward a potential breakout near $100,000.
- Traders should monitor macroeconomic conditions, Bitcoin dominance approaching 55%, and hash rates. Ethereum remains stable within a $1,600–$1,900 range, trailing behind Bitcoin’s momentum.