Global trade conflict unsettles investors, prompting Bitcoin to rebound
In the current economic climate, even jumping aboard the bitcoin bandwagon might still yield fruitful results. Despite arriving late to the party, bitcoin is once again carving out a substantial niche for itself as a prime alternative for investors who are growing increasingly concerned about President Trump's trade wars and looking to ditch traditional US investments.
After an initial dip to record lows in 2022 after Trump announced his National Liberation Day tariffs in April, the legendary digital currency has made a steady comeback. In fact, it has outperformed stock markets in 10 out of 17 sessions since then, according to VanEck data.
As of now, bitcoin is glancing warily at the $100,000 mark - a sight not seen since just three months prior. This remarkable surge comes on the heels of a 15% rise in April.
When compared to the S&P 500, which slipped about 0.8% in April, the tech-centric Nasdaq Composite with its paltry 0.8% gains during the same period, and the US dollar index's fall of more than 4%, bitcoin's performance looks nothing short of radical.
As Block Scholes analysts comment, "The most recent price action may well have bolstered the belief that bitcoin is not simply the 501st company on the SPX."
The month of April saw bitcoin climbing a staggering 33% from its low point. This unexpected growth is particularly significant given the way the cryptocurrency has mimicked the performance of equity markets during times of market turmoil - particularly the tech sector - over the past few years. So, what's behind bitcoin's renewed vigor in 2025?
Investment from major institutions, Bitcoin's reputation as a safe haven during economic uncertainties, growing concerns about inflation, technological advancements, and the continued adoption of the cryptocurrency by both individual and corporate players have all played a part in its remarkable resurgence[1][2].
Moreover, bitcoin's dominance in the crypto market, lasting institutional influence, and its enduring safe haven status have been driving factors for its continued growth in 2025[4][5].
- Despite notorious volatility in cryptocurrency markets, bitcoin's performance has been exceptionally impressive, outperforming stock markets and traditional US investments.
- Bitcoin's recent surge has been remarkable, reaching levels not seen since just three months prior, while the S&P 500, Nasdaq Composite, and US dollar index were seeing declines.
- In April alone, bitcoin climbed a staggering 33%, a significant growth considering its historical mimicry of equity markets, particularly during times of economic uncertainty.
- Factors contributing to bitcoin's renewed vigor in 2025 include investment from major institutions, its reputation as a safe haven during economic uncertainties, growing concerns about inflation, technological advancements, and the continued adoption of the cryptocurrency by both individual and corporate players.
- Bitcoin's dominance in the crypto market, lasting institutional influence, and its enduring safe haven status have been primary drivers for its continued growth.
