In the early hours of May 7, India launched a military strike on Pakistan, sparking a full-scale war in the heart of Asia.
This is not friction; it is a full-scale war involving air force, ground troops, and strategic mobilization.
The market has reacted violently at the first moment, with crypto assets being the first to bear the brunt.
📊 Five core signals behind the war
1️⃣ Why is this war unusual?
Both India and Pakistan are nuclear-armed states, with a total population of 2 billion
Highly integrated into the global supply chain, the conflict will reshape Asian logistics and capital structure
Geopolitical risk index soars, global capital is re-pricing risk exposure
2️⃣ The market's violent reaction at the first moment:
Asian stock markets fell 3-6%
Gold and crude oil surged, Brent crude broke $90
Demand for the US dollar skyrockets, risk aversion dominates globally
The crypto market also struggles to remain unscathed:
BTC, ETH first to plunge
SOL, AVAX, MATIC and others drop over 5%
Local exchanges in South Asia face liquidity exhaustion, users panic sell
3️⃣ Why is even Bitcoin plummeting?
Many believe BTC is a safe-haven asset, but actually:
In the first phase of panic, institutions will liquidate all assets, cash is king
$BTC 's hedging effect often only begins to manifest in the second phase
So, a short-term drop may lead to a long-term rise
4️⃣ Short-term strategy opportunities under war?
If you can accept high-volatility trading, you might consider:
Flash-level reaction: the most intense response comes within 1 hour after solid upgrade news is released
Short first choice BTC, $ETH ETH (high liquidity, strong directional)
Aggressive traders may choose $SOL , #AVAX (more volatility)
Leverage should be controlled at 1x-3x to avoid rebound liquidation risk
Take profit signal: on-chain activity + social sentiment peaking is the best exit point
5️⃣ Medium to long-term trend: Will Bitcoin restart its 'safe-haven asset' property?
If the war continues to escalate:
Local fiat currency trust declines
P2P trading demand for cold wallets surges
Stablecoins + BTC = asset hedging combination
This has been repeatedly validated in the 2022 Russia-Ukraine conflict and the 2023 Israel-Hamas conflict.
✅ Summary:
War = volatility, volatility = opportunity.
Don't use emotions to predict peace, nor use positions to trade the market.
Those who truly make money are calm, decisive, and disciplined responders.
War changes not only borders but also capital flows, financial logic, and market rhythms.
This is not just a war between India and Pakistan, but also the starting point for a new round of global risk pricing.
📌 Save + Share, the next wave of volatility may be approaching.
