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The world’s largest cryptocurrency approached its all-time high Wednesday. Bitcoin neared $108,000 in early morning trading, levels it hadn’t seen since the cryptocurrency notched an all-time high of almost $109,000 in January, according to CoinGecko. It’s up more than 1% over the past day and 22% over the past month. The cryptocurrency’s recent rebound mirrors the broader resurgence in the stock markets. The S&P 500 is up 15% since late April, and the Nasdaq has jumped more than 20%.
The market wide upswing follows a ratcheting down in President Donald Trump’s rhetoric and policy on tariffs, including an announcement that he and Chinese counterparts had negotiated a 90-day pause.
While many advocates for Bitcoin argue that the cryptocurrency is a hedge against more traditional assets, the digital asset often moves in lockstep with the stock market and the performance of large tech companies.
After Trump won his campaign for reelection, investor enthusiasm soared in anticipation of his administration’s deregulatory agenda and promised interest rate cuts. In January, on the day of Trump’s inauguration, Bitcoin notched an all-time high, according to CoinGecko.
But soon after Trump assumed the presidency, the cryptocurrency tanked in price. In early April, less than a week after Trump unveiled his set of severe tariffs, it dropped to a low of nearly $76,000,
Still, investors often attribute the cryptocurrency’s daily price swings to more crypto-specific market changes. Phil Wirtjes, the CEO of the crypto exchange Enclave Markets, said Wednesday’s surge in Bitcoin’s price is “likely aided by policy advancements.”
He pointed to the Senate’s recent progress on a bill that regulates stablecoins, or cryptocurrencies pegged to underlying assets like the U.S. dollar, as “giving more confidence to larger buyers.”
And Franklin Lacroix, director of investment success at the crypto app SwissBorg, attributed part of the recent surge to “strong institutional inflows” into spot Bitcoin ETFs, which saw investors buy up $329 million of the assets over the past 24 hours, according to data from SoSoValue.
This story was originally featured on Fortune.com
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