As bonds and equities disappointed investors, Bitcoin offered a bright spot on its way to a new record. Bitcoin’s price topped out at $109,693. Later in the day its price fell back down as low as $106,400, briefly turning negative, before eventually recovering. The record performance marked a significant turnaround for Bitcoin after it got wrapped up in the market tumult of April.
“Bitcoin’s new all-time high is a clear signal yet that this crypto bull market has further room to run,” said Thomas Perfumo, global economist at crypto exchange Kraken.
Bitcoin sank with the rest of the markets in the aftermath of President Donald Trump’s April 2 tariff announcement. However, it rebounded once Trump announced his tariff pause a week later on April 9th. Since its April 9th low of $74,589 Bitcoin rose 43%.
The Bitcoin run up was due to the broader recovery of the equities market, investors putting money back into Bitcoin ETFs after having pulled it during last month’s market shock, and the growing roster of public companies that hold it, according to Perfumo.
“Unless that trifecta of tailwinds falters, dip-buyers are likely to set the tone and today’s record print is evidence of that,” he said.
With the rest of the markets particularly vulnerable to policy decisions, Bitcoin is gradually becoming a safe haven rather than a risk for investors. Much of Bitcoin’s bull run is due to the fact its no longer seen as a speculative asset but as a hedge against risks from fiat currencies, according to Roshan Robert, CEO of crypto exchange OKX.
“Recent market turmoil, rising fiscal concerns like Moody’s downgrade, and broader geopolitical uncertainty are prompting institutional and corporate investors to view Bitcoin similarly to gold: as a non-sovereign, scarce store of value that can offer downside protection in uncertain macro environments,” he told Fortune.
Wednesday’s declines continued a downward trajectory that had started a day earlier. The two down sessions came after the stock market saw a healthy resurgence on the back of easing trade tensions between the U.S. and China.
“Absent a clearer commitment towards putting deficits on a downward path, investor concerns about US fiscal dynamics are likely to persist,” DB’s economists wrote.
