The impact of an India–Pakistan war on the crypto market would depend heavily on the scale and duration of the conflict, global response, and investor sentiment. While neither India nor Pakistan is a dominant player in the global crypto market compared to countries like the U.S., China, or South Korea, a war between the two nuclear-armed nations would have significant regional and global ripple effects. Here's how it might influence the crypto market:

🔻 Negative Impacts

Market-Wide Risk Aversion

Investors typically flee to safe-haven assets (like gold or U.S. Treasury bonds) during geopolitical instability.

Crypto, still considered volatile and speculative, may see a short-term selloff as risk appetite drops.

Regulatory Crackdowns or Controls

Governments at war may impose capital controls or restrict access to exchanges, leading to reduced local trading volume.

India has a large crypto user base; any state intervention could disturb demand.

Infrastructure Disruptions

Internet blackouts, financial sanctions, or cyber warfare could affect exchanges and wallets, especially in the conflict zone.

Investor Panic & Volatility

Global uncertainty tends to trigger wild swings in Bitcoin and altcoins, possibly leading to temporary price drops.