BTC Pulls Back at $97K While ADA Outperforms Peers Ahead of Fed Rate Meeting

Bitcoin Briefly Hits $97K as Geopolitical Tensions and Trade Talks Jolt Markets

Crypto markets whipsawed midweek as rising tensions between India and Pakistan and renewed U.S.–China trade negotiations drove a surge in volatility.

Bitcoin surged past $97,000 late Tuesday, before easing to $96,500 during early Asian trading on Wednesday following reports that India launched airstrikes in Pakistan, escalating a weeks-long standoff. The operation, dubbed “Sindoor,” rattled global risk markets just hours after optimism over U.S.–China tariff talks had briefly boosted sentiment.

“Volatility is climbing fast,” said Nick Ruck, director at LVRG Research, in a Telegram message. “Bitcoin’s sharp move surprised markets already on edge ahead of the Fed’s rate decision. With geopolitical risks mounting, BTC is being viewed as a safe-haven play.”

Cardano’s ADA led altcoin advances with a 3% daily gain, while DOGE, XRP, BNB, and ETH posted more muted increases under 2%. Legacy tokens like Litecoin (LTC) and Bitcoin Cash (BCH) jumped as much as 10%, signaling renewed interest in older assets.

The CoinDesk 20 Index, which tracks the largest digital assets, climbed 1.9%, reflecting broad-based strength across the market.

Market analysts also flagged a notable uptick in Bitcoin wallet activity, pointing to growing user engagement. “Active addresses have hit a six-month high,” said Ryan Lee, chief analyst at Bitget Research. “It’s a key signal of rising demand, supporting a case for a potential breakout toward $100K.”

Lee added that Bitcoin dominance, now approaching 55%, along with rising hash rates, underscore its relative strength. Ethereum, meanwhile, remains range-bound between $1,600 and $1,900, lacking the momentum seen in Bitcoin.