1. Increased volatility
When geopolitical risks intensify, investors often react with panic, causing price spikes in cryptocurrencies — especially in Bitcoin and Ethereum. This can be both an increase (as in the case of 'safe haven') and a decrease (if there is a liquidity outflow).
2. Growing demand for 'digital gold'
Bitcoin is often seen as 'digital gold' in unstable times. If the conflict escalates and affects the global economy (for example, through energy markets or Asian stock markets), this could lead to a capital influx into BTC and USDT (stablecoins).
3. Pressure on emerging markets
India and Pakistan are major emerging economies. Any instability in the region could lead to capital outflows, depreciation of national currencies, and increased interest in decentralized assets as a means of preserving value.
4. Possible regulatory intervention
If cryptocurrencies begin to be used to circumvent sanctions or finance military actions (as seen in other conflicts), regulators may tighten control, which would negatively impact the market.