Bitcoin reached a new all – time high of $ 109,400 on May 21, 2025, surging more than 26% in the past month. This came after a temporary trade agreement between the United States and China on May 12 eased macroeconomic fears and boosted investor confidence.
The 90 – day tariff suspension and the cooperative tone in negotiations removed the risk of “sudden re – escalation,” which had a significant impact on the risk appetite of traditional and cryptocurrency investors. The easing of trade war tensions also coincided with other factors that contributed to Bitcoin’s rally, such as the geopolitical de – escalation between Russia and Ukraine and improving regulatory optics.
These developments led to a rotation of capital into Bitcoin and high – beta tech, as the need for geopolitical hedging faded and liquidity remained abundant. As a result, Bitcoin is no longer just seen as a fear hedge but is increasingly regarded as a high – conviction risk asset in periods of macro stability.
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