Crypto markets took a hit after the India and Pakistan war kicked off, with India launching precision strikes in Kashmir on Tuesday, reigniting tensions between the two nuclear-armed neighbors.
The geopolitical flare-up sent a jolt through digital assets, with Bitcoin, Ethereum, and Solana all dropping as investors moved to de-risk.
Maybe we’ll see China and Taiwan next? Four different warzones at the same time would not be great.
So the question on minds is whether this news is a nothingburger or whether you should be prepared to sell as more wars heat up.
India and Pakistan War: Crypto Prices Take a Brief Hit
Minutes after news broke of India’s “Operation Sindoor” strikes in Pakistan-administered Kashmir, markets recoiled. Bitcoin fell to $94,671. Ethereum slid to $1,774. Solana dropped to $144.
But the drop was short-lived.
The real fear here is we’re seeing levels of conflict not seen between these two nations in 100 years. Additionally, many are speculating whether China will support Pakistan and the US India.
To say “nothing is happening” is delusional. Anon, living in denial is not healthy.
Investor Behavior and Stablecoin Surge
In the face of armed conflict, investors usually don’t chase upside—they’re looking for cover. Remember that this is the third major global war occurring concurrently, and there is no sign that any of them will slow down.
Crypto’s long-term promise isn’t much comfort when missiles start flying. Volatility becomes a liability. Stablecoins, pegged to fiat, are pulling in capital as traders seek something—anything—that doesn’t swing 10% on every headline.
After Pakistan claimed to down five Indian jets and India doubled down on targeted strikes, markets buckled further.
#BREAKING: India has just launched a missile strike on Pakistan
Pakistan vows to retaliate
It’s a full-on war now. pic.twitter.com/b04D1t1K2V
— Nick Sortor (@nicksortor) May 6, 2025
War risk hit a market already walking on a tightrope. With the upcoming FOMC today—and many predicting rate cuts to be off the table—there’s not much macro-speaking that can boost markets.
The rush into stablecoins might say more than the sell-offs: this isn’t mass exit, it’s risk management. Crypto’s growing up, but the bull market might be paused for the summer.
Nothing Ever Happens
(X)
There will be a lot of people telling you this war is a nothingburger. They’ll say “Pakistan and India fight every few years.”
When you compare this to the major wars they used to fight in the 1960s/70s, they’ve improved bilateral relations.
Even if that is true and crypto is maturing, the broader picture is rough. War in the Middle East, the grinding Ukraine and Israel conflicts, no help from the Fed, and tariff chaos out of Trump’s camp—none of it points to stability. Markets are already heavy with pessimism. Summer’s shaping up to be volatile.
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Key Takeaways
- Crypto markets took a hit after the India and Pakistan war kicked off, with India launching precision strikes in Kashmir on Tuesday.
- Maybe we’ll see China and Taiwan next? Four different warzones at the same time would not be great.
- There will be a lot of people telling you this war is a nothingburger. Don’t believe it.
The post WW3 Imminent: Is the India and Pakistan War Time to Sell? appeared first on 99Bitcoins.
