Pakistan's news alleges that India is planning an attack within the next 24-36 hours, which could create significant geopolitical instability, directly affecting investor sentiment in the crypto market. In the context of escalating tensions between the two nuclear-armed nations, investors tend to shift capital towards safe assets like Bitcoin, often regarded as "digital gold." This may lead to strong short-term volatility, with the potential for Bitcoin and major digital assets to surge in price due to increased demand for safe havens. However, if the conflict escalates seriously, overall cash flow in the financial market may retreat, putting downward pressure on the entire crypto market.
Additionally, the tense situation between Pakistan and India may also affect global risk-off sentiment, causing investors to temporarily withdraw from highly volatile assets like altcoins, making the differentiation in the crypto market more pronounced. Stablecoins may witness a surge in capital inflow, while smaller, low-cap coins may face sell-offs. Furthermore, if tensions persist or escalate into military conflict, the crypto market may also be indirectly affected by a decline in global liquidity, tightening financial policies, or capital control measures. Therefore, investors need to closely monitor geopolitical developments and prepare appropriate risk management scenarios.
