Bitcoin led a broad rebound across risk assets last week as it closed at the $95,000 mark to record its strongest weekly performance since early March.
The surge represents a 12 percent gain from the previous week as geopolitical developments and shifting political sentiment fueled renewed interest in the cryptocurrency sector.
The original digital currency outpaced major equity benchmarks with the Nasdaq 100 index also rising about 5 percent during the same period.
Analysts attribute the move to investors recalibrating their positions amid continued uncertainty around global trade policies and the broader economic outlook.
Jake Ostrovskis, a trader at crypto market-making firm Wintermute, said in a note that implied correlations within the crypto market remained elevated despite improved market breadth.
He explained that macroeconomic forces and geopolitical tensions continue to drive investor flows across digital assets.
During his presidential campaign, President Donald Trump pledged to support domestic Bitcoin production and establish a national Bitcoin reserve, a significant shift from his earlier skepticism toward digital assets.
Increased political contributions from the crypto industry have also deepened the sector’s involvement in the current election cycle.
Bitcoin previously reached an all-time high of around $109000 during Trump’s inauguration in January before retreating sharply due to concerns over trade tariffs and inflation risks.
Although Bitcoin and other cryptocurrencies are not directly impacted by tariffs, they have increasingly behaved like traditional risk assets, moving in tandem with broader equity markets.
Despite Bitcoin’s intended design as an alternative store of value separate from the mainstream financial system, the digital currency has maintained a high positive correlation with the Nasdaq 100 since the global Covid-19 pandemic.
The trend continued last week as Bitcoin’s rally mirrored gains in technology stocks.
Market participants will closely watch for potential volatility as macroeconomic conditions and political developments continue to evolve in the weeks ahead.
