Crypto surges 24% in a month — is this a breakout or just another head fake?
Bitcoin is back in the headlines — and for good reason. The world’s largest cryptocurrency has soared 24% in the past month, smashing back through the $100,000 mark for the first time since February. At one point, it was hovering near $76,000 just weeks ago.
Now that it’s climbed back above $110,000, investors are once again asking the million (or hundred thousand) dollar question: Should I buy Bitcoin now?
The answer isn’t as simple as it seems.
What’s behind Bitcoin’s bounce?
Bitcoin’s recent rally has largely been driven by shifting investor sentiment around the global economy — particularly tariffs. In early April, crypto and equities both took a hit following President Trump’s sweeping new tariffs on imported goods, which triggered fears of an escalating trade war.
But markets have rebounded as investors bet that a diplomatic resolution is in the works. A promising new trade agreement with the U.K., including reduced auto and steel tariffs, helped boost confidence. Plus, the U.S. and China have agreed to temporarily reduce tariffs as negotiations continue — another sign that cooler heads may be prevailing.
Although Bitcoin itself isn’t directly affected by tariffs, it’s been trading like a proxy for macroeconomic uncertainty — rising and falling with each headline. Right now, optimism is winning.
But are we getting ahead of ourselves?
There’s no doubt that Bitcoin’s long-term prospects have improved. Institutional adoption is accelerating, Bitcoin ETFs have taken off, and the U.S. government recently added Bitcoin to its strategic reserve — a milestone for mainstream recognition.
However, investors should be cautious about chasing this latest surge.
Much of the bullishness is rooted in expectations — not guarantees. The trade deals that are lifting sentiment haven’t been finalized yet. Tariffs, while softened in some areas, are still high in others. And with inflation concerns and policy unpredictability still looming, the market could quickly turn volatile again.
As one analyst put it: “Bitcoin is acting like a barometer for global risk. But in stormy weather, barometers bounce.”
So, should you buy Bitcoin while it’s under $110,000?
If you believe in Bitcoin’s long-term potential and can stomach short-term swings, this may look like a dip worth buying. But if you’re trying to time the market, consider this: With trade policy still in flux and prices this elevated, waiting for more clarity could be the smarter move.
Bottom line? Bitcoin’s latest surge is exciting — but not without risk. Make sure your enthusiasm isn’t outpacing your strategy.
And if you’re thinking about where to put your money right now, you might want to look beyond crypto. The analysts at Motley Fool Stock Advisor just revealed what they believe are the 10 best stocks to buy — and Bitcoin didn’t make the list.
Sometimes, the biggest returns come from where you least expect them. Just ask anyone who bought Netflix in 2004 or Nvidia in 2005.