The price of Bitcoin approaches the $95,000 barrier, for the first time since early March.
Bitcoin leads a recovery wave in high-risk assets, heading towards recording its largest weekly gains since Donald Trump was elected President of the United States.
While the Nasdaq 100 index, which includes major tech companies, rose by nearly 5% as investors awaited the implications of the trade war Trump is engaged in, the leading cryptocurrency climbed by 12% since last week, approaching the $95,000 level for the first time since early March.
Despite ongoing volatility, the internal correlations among cryptocurrencies remain high.
According to (Jake Ostrowski), a trader at market-making firm "Wintermute", in a note on Friday.
He added: "Despite the improvement in market depth, it is clear that macroeconomic and geopolitical factors remain the main drivers of flows.
Trump's commitments to support Bitcoin and cryptocurrencies:
During his presidential campaign, Trump pledged to ensure that all remaining Bitcoin would be "made in the USA".
By establishing a strategic reserve of cryptocurrency. Previously, Trump appeared skeptical about digital assets, but he shifted to embrace the sector during his election campaign, partly due to the industry's intensified political contributions.
"This momentum contributed to pushing the price of Bitcoin to its highest levels, reaching around $109,000 when Trump took office on January 20.
However, the currency quickly fell by as much as 30% in the following weeks, amid rising fears that tariff-based trade policies could slow global growth and increase inflationary pressures.
Unlike many companies listed on the Nasdaq 100, Bitcoin and other cryptocurrencies are not directly affected by tariffs.
Bitcoin's correlation with stocks:
Despite everything, Bitcoin has continued to outperform many high-risk assets in recent years, and its correlation with stocks has remained strong when measured over long periods, excluding the impact of short-term volatility, despite the recent decoupling in performance.
Bitcoin, which emerged in the wake of the global financial crisis, was designed to be an independent alternative to the traditional financial system, and in times when other assets collapse, it is supposed to represent a safe haven from economic storms.
For this reason, many supporters consider it a store of value, dubbing it "digital gold", especially after its recent performance exceeded that of the precious metal. Since the COVID-19 pandemic, the leading cryptocurrency has maintained a strong positive correlation with the Nasdaq 100 index, often moving in parallel with the performance of this index that includes major tech companies.
