Bitcoin (BTC) price jumps 28% from its monthly low, setting up for its best weekly close since January

Bitcoin and altcoin prices continued their recovery, and are on track for their best weekly close since January. The Bitcoin (BTC) price has jumped for three consecutive weeks and is now 28% above its lowest level this month.

Bitcoin (BTC) and altcoin prices continued their recovery on Friday, setting them up for their best weekly close since January, as Donald Trump signaled that he is open to reaching a trade deal with China.

Bitcoin rose by 1.5% in the past 24 hours and was trading at around $97,000 at the time of writing. The world’s largest cryptocurrency has now surged by 28% from its lowest level this month, which was hit after a brief dip below $76,000.

Most altcoins also advanced, with the best weekly performers being Official Trump (TRUMP), Sui (SUI), Dogwifhat (WIF), Fartcoin (FARTCOIN), and Stacks (STX). All these tokens have surged by over 50% in the last seven days.

Other risky assets also rebounded. The S&P 500, Nasdaq 100, and Dow Jones Industrial Average indices have soared by more than 10% from their monthly lows, setting them up for their best weekly gains since December.

A senior White House official said on Friday that there had been progress in trade talks with China, and that U.S. President Donald Trump is open to striking a deal.

“We are making progress in the economic and trade discussions with China at all levels,” the official said. “The president is fully briefed and engaged in the discussions.”

The official added that Trump is aware of the potential impact of any trade deal on the U.S. economy and is focused on reaching an agreement that is in the best interests of the American people.

The development comes after Trump met with Chinese President Xi Jinping at the G20 summit in Osaka, Japan, last month. The two leaders agreed to resume trade talks after they broke down in May.

Trade tensions between the U.S. and China have escalated in recent months, as Trump imposed tariffs on $250 billion worth of Chinese goods in response to what he claims are unfair trade practices. China retaliated with tariffs on U.S. goods.

The trade war has weighed on global economic growth and market sentiment.

Meanwhile, Trump also said on Friday that he has no plans to fire Federal Reserve Chair Jerome Powell, despite earlier threats.

“I like Jerome Powell. He’s doing a good job,” Trump told reporters at the White House.

Trump has repeatedly criticized Powell for cutting interest rates too slowly and for keeping them at "ridiculously low levels for too long." He has also accused the Fed of being part of a “witch hunt” against him.

However, Trump also said that he appreciates Powell’s efforts to maintain economic stability.

“We’re in the best shape we’ve ever been in economically,” Trump said. “The greatest time in the history of our country economically.”

The Fed is expected to keep interest rates unchanged at its meeting next week, but investors will be looking for clues on when to expect a rate cut.

Analysts at Capital Economics said they expect the Fed to begin cutting interest rates by the second quarter of 2020, as inflation is expected to fall toward the central bank’s 2% target range.

Bitcoin emerges as a safe haven as risks rise

Bitcoin has also attracted interest as a safe haven asset amid rising global risks, such as trade wars, geopolitical tensions, and political uncertainty.

Although gold has outperformed Bitcoin in terms of returns during this period, the cryptocurrency has still managed to outperform American stocks.

“Relative performance isn’t everything, but it does highlight how Bitcoin has performed better than most other major asset classes in a turbulent year for the markets,” said Ben Michelson, an analyst at CapitalVia Global.

Is it safe to sell Bitcoin and altcoins in May and go away?

“Sell in May and go away” is a popular phrase in financial markets. It is based on the observation that stocks often underperform in May and during the summer months, as investors tend to travel and stay away from the market.

Seasonality data indicates that Bitcoin’s average return in May is 7.95%, which is lower than the double-digit growth seen in the previous three months.

As shown below, the second and third quarters are historically the worst-performing periods for Bitcoin.

However, it’s worth noting that May has seen some of the largest rallies in Bitcoin. In 2020, Bitcoin soared by 51% in May, marking the best monthly gain since November 2011.

Last year, Bitcoin posted a gain of 26% in May, rendering it the best-performing month of 2022.

Analysts have a mixed outlook for Bitcoin and other altcoins as the recovery continues. In a note, Nansen warned that the ongoing rally could be due to the Fear of Missing Out, which normally happens ahead of a local top.

Ki Young Ju