Bitcoin Price Surges Amid India-Pakistan Tensions: $734M in Shorts Liquidated
Date: May 7, 2025 | Author: Ibrahim Ajibade, FXStreet
Bitcoin (BTC) saw explosive price action on Wednesday, briefly surging to $97,260 after dipping below $94,000 — a sharp move triggered by escalating geopolitical tensions in South Asia.
The rally came as India launched a missile attack on multiple targets in Pakistan, including disputed areas of Kashmir. The surprise assault rattled Asian markets, causing Bitcoin to initially plunge to $93,500. This swift volatility led to rapid selloffs and liquidations, particularly among overleveraged traders.
Key Developments:
Coinglass data shows BTC broke through a massive $734 million short position cluster around $95,600, igniting a bullish breakout.
Despite early pressure, Bitcoin held firm above $93,500, showing strong support at last week’s local lows.
As tensions rose, Pakistan announced countermeasures, amplifying market uncertainty.
Trump Steps In
Former President Donald Trump called for calm, urging swift de-escalation and confirming U.S. talks with both nations. Traders welcomed the diplomatic signals, pushing BTC back above $97,100.
> "They've been fighting for a long time. I just hope it ends very quickly," Trump said, as the White House confirmed engagement with Indian and Pakistani officials.
This intervention helped stabilize sentiment and reignited bullish momentum.
Bullish Outlook Strengthens
With resistance at $95,600 cleared, BTC bulls now eye the $98,200 level, with the psychological milestone of $100,000 back in sight — especially if geopolitical tensions ease and institutional demand continues rising.
Leverage Watch:
Bullish positions: $2.14B
Bearish positions: $2.06B
Momentum favors the bulls as short liquidations fuel upward momentum.
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