Pakistan Legalizes Cryptocurrency: Bitcoin Surges to $65,000 Amid Increased Market Activity

On 20 March 2025, Pakistan announced the legal status of cryptocurrency; it was a historical move that shocked the world. Bitcoin price surged to $65,000 within an hour of the announcement, and Ethereum (ETH) gained 2.5% to $3,800. Likewise, BTC’s trading amount increased dramatically to 12 billion USD, which is 40% higher than the 24-hour average before. The upshot of this was a noticeable increase in trading volumes for altcoins such as XRP and Cardano (ADA) as interest among investors surged throughout the region.

Historic Decision Fuels Crypto Market Rally

Pakistan’s move to legalise cryptocurrency follows on the heels of the world’s markets eyeing regulatory activity. Crypto Rover posted at 10:30 AM UTC that the news was well received instantly, with the market returning bullish. The 3% Bitcoin price surge and Ethereum’s 2.5% jump suggest an increased comfort level by the same investors. Noteworthy is that the BTC/PKR pair saw a 50% volume jump to 100 million USD, and ETH/PKR rose by 45% on domestic interest.

The effect was also felt on altcoins. The trading volumes of XRP and Cardano (ADA) increased by 20% and 15%. Stablecoins also saw single-digit increases, with USDT/PKR volumes also up 30%, indicating a shift towards more stable and liquid trading environments. This explosion of activity shows just how much more market participants get engaged when regulatory clarity is given.

Technical Indicators Confirm Bullish Sentiment

The positive sentiment was backed up by key technical indicators. Bitcoin’s Relative Strength Index (RSI) climbed from 60 to 68 over just one hour, reporting very firm buying power. At the same time, Ethereum’s Moving Average Convergence Divergence (MACD) chart recorded a bullish crossover at 11:45 AM UTC, indicating an additional upward momentum.

These technical signals were supported by on-chain data. Bitcoin average transfer value increased by 15% indicating higher activity on the part of larger investors (potentially institutions). Coupled with that, the hashrate of the Bitcoin network also enjoyed a slight uptick of around 2%, indicative of the potential uptick in mining activity propelled by the improving market conditions.

Just In : Pakistan 🇵🇰 To Legalize Crypto
In The Country
To Boost Foreign Investment
Says :Pakistan Crypto Council CEO
Mr. SAQIB pic.twitter.com/fmpyZlBWxm

— CryptoX.Eth (@supersumeet) March 20, 2025

Economic and Political Context of Pakistan’s Decision

The move to legalise cryptocurrency fits into Pakistan’s wider economic reforms to create an environment for financial innovation. As physical cash becomes less prevalent in the economy and the fintech space continues to grow, legalising digital currencies represents a practical move to further modernise the financial environment. To prevent illegal activities, Pakistan is looking into regulating the crypto market to foster secure and transparent trading environments.

The framework comes amid Pakistan’s economic woes, which include inflation and a weak currency. Wealthy foreigners can swap their coins for fiat currency. Furthermore, no one will be dragged through speakeasies in an underground economy as the unbanked population will have an economic alternative and will be included.

With this stride, Pakistan emerges as a progressive nation welcoming the digital revolution. It also fits within the greater global pivot towards cryptocurrency adoption, as nations aim to become regulatory-friendly and profit off the growing digital economy.

Future Implications for the Global Crypto Landscape

While there are immediate consequences such as price surges, Pakistan’s decision to legalize cryptocurrency has much wider implications. Moreover, higher trading volumes along with better-defined regulatory frameworks might also bring professional investors into the ecosystem, helping to build liquidity and reduce price volatility as time goes on. As a result of the significant progress seen with BTC/PKR and ETH/PKR pairs, we anticipate further entry from Pakistanis into crypto in the long term.

Another intriguing little detail: AI-based trading algorithms help determine the direction of the crypto market. Pakistan’s decision was not preceded by any specific AI-related announcement, and recent trends showed a 10% increase in trading volumes driven by AI. As regulations catch up and mature, this technological integration might matter, allowing more advanced trading strategies to become mainstream.