The recent India-Pakistan conflict, escalating with airstrikes and missile attacks since May 6, 2025, has significantly impacted the crypto market. Initially, markets faced volatility as liquidity dried up on South Asian exchanges, triggering panic selling among traders. Bitcoin and altcoins experienced sharp declines, with some reports noting heavy selling by Indian and Pakistani users. However, a ceasefire brokered by Trump led to a market rebound, with Bitcoin and altcoins rallying as investor confidence returned. Despite this, underlying tensions and potential regulatory shifts in the region continue to pose risks, keeping crypto markets on edge amid geopolitical uncertainty.

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