Bitcoin has skyrocketed 10% over the past seven days, with Bitcoin gaining its position. On Wednesday, the original cryptocurrency reached $94,000, reaching its highest level since March 2nd.
The rest of the Crypto market also gathered this week. Ethereum has increased by 11% over the past seven days, with XRP increasing by 7% and Solana increasing by 13%. Traditional stock markets have also made profits after a historic meltdown earlier this month. NASDAQ has increased by 5% over the past five days, while the S&P 500 has increased by 4%.
“The broader macro environment is very unstable, especially in the case of stocks and bonds, but the digital asset class is very well maintained,” James Genetzke, CFO of Crypto wallet provider Exodus, told Fortune.
Trump announced the sweeping tariff earlier this month, sending the code to Tailspin. And he temporarily suspended tariffs in all other countries just a few days later, but he raised the tax to 145% on Chinese imports. But this week, Trump has adopted a soft tone for the country, saying he plans to do something “very great” in trade talks with China on Tuesday. He added that if both countries could make a transaction, tariffs would be reduced “significantly.”
“An announcement from the Trump administration about negotiations leading up to tariff drops this week from the Trump administration has curtailed investors’ appetites. Bitcoin has emerged as a big winner.”
Treasury Secretary Scott Bescent has also shown that the president is “very close” to entering into a deal with India, with White House officials promoting progress in meetings with other countries.
The relief rally also comes as Trump retreated from his threat to Firefighter Chairman Jerome Powell. The president has expressed his dissatisfaction with the head of the central bank about his reluctance to lower interest rates as Trump’s tariffs wreaking havoc on financial markets. On Friday, the White House said it was looking into whether Trump has the power to fire Powell, leading to concerns over the bank’s independence. However, the market rebounded Wednesday as Trump told White House reporters he had no intention of firing him.
Trump’s feud with the Fed was short-lived, but some crypto enthusiasts say they’ve highlighted the strength of Bitcoin as a decentralized asset that is not managed by any entities. Bitcoin prices continued to rise as investors fled American assets and weakened the value of the US dollar.
“In this environment, investors are looking for alternative safe haven assets,” James Butterphyll, research director at ETF publisher Coinshares, told Fortune.
This story was originally featured on Fortune.com.