Bitcoin Surges 12% as Risk Assets Rebound

Bitcoin has led the rebound of risk assets, poised to mark its largest weekly gain since the U.S. presidential election. As investors digest the impact of the Trump trade war, the tech-heavy Nasdaq 100 index rose by around 5%, but Bitcoin has already risen by about 12% since last week, breaking above $95,000 for the first time since early March.

Jack Ostroffski, a trader at a cryptocurrency market maker, noted that despite the overall market improvement, macro and geopolitical forces continue to be the primary drivers of fund flows. The inherent correlation within the cryptocurrency space remains high, and the ongoing volatility has not diminished the influence of these external factors.

This significant gain in Bitcoin's value highlights its resilience and potential as a hedge against market uncertainties. The cryptocurrency's performance has outpaced that of traditional risk assets, demonstrating its growing appeal among investors seeking alternatives to conventional financial instruments.

The surge in Bitcoin's price can be attributed to several factors, including increased institutional interest and a growing acceptance of cryptocurrencies as a legitimate asset class. The recent rally also reflects a broader trend of risk-on sentiment in the market, as investors become more optimistic about the economic outlook.

However, it is important to note that the cryptocurrency market remains highly volatile, and the recent gains may not be sustained in the long term. Investors should exercise caution and conduct thorough research before making any investment decisions in this space.