Bitcoin increased past $94,000 on Wednesday, hitting its highest level this month as easing tensions between the US and China lifted investor confidence. Meanwhile, gold prices pulled back to $3,300 an ounce after briefly topping $3,500.
This shift signaled a renewed appetite for riskier investments, with markets responding to positive signals around global trade.
The leading cryptocurrency jumped 6.6% to $94,420 amid hopes that former US President Trump may not push for harsh tariff changes, a stance that helped boost stocks, commodities, and digital currencies alike.
Gold, which had soared to $3,500 on Tuesday, quickly reversed course, slipping to $3,300. Analysts view this dip as a sign that some investors are moving away from traditional safe havens and turning to alternatives like Bitcoin.
A key factor supporting both assets has been the increase in global money supply. Historically, gold tends to react first to liquidity boosts, with Bitcoin usually following after a few months.
Traders now see Bitcoin’s strength as part of a broader shift in strategy, especially as many view it as undervalued compared to gold, particularly during times of inflation and loose monetary policy.
However, some market watchers remain cautious. High funding rates and weakening on-chain data could pose risks to Bitcoin’s current momentum. Still, many believe that continued progress in US-China relations could help push Bitcoin above $100,000 soon.