Bitcoin briefly traded above $93,500 Tuesday evening in New York, notching a fresh monthly high as easing trade war fears and shifting U.S. monetary signals stoked investor demand for risk assets.

The rally came as market participants reassessed the trajectory of the U.S.–China trade dispute following conciliatory remarks from U.S. officials, as well as reports that President Donald Trump had softened his stance on firing Federal Reserve Chair Jerome Powell. 

The combination helped lift sentiment across equities and commodities, with Bitcoin and gold both posting sharp moves.

Bitcoin’s 4.7% intraday gain aligned with a broader uptick in macro-driven trades. Gold initially jumped to $3,500 before retreating to $3,300, a volatile swing that some analysts interpreted as a signal of capital rotation into digital assets.

“Both assets follow global M2 money growth, but with a twist,” Ryan McMillin, chief investment officer at Merkle Tree Capital, said in a note to investors on Tuesday. “Gold reacts more immediately, while Bitcoin tends to lag by about 90 days. 

“Historically, strong gold rallies often signal upcoming Bitcoin rallies—and can also trigger gold reversals just as Bitcoin starts to run.”

McMillin added that gold’s sharp reversal overnight could reflect a shift among store-of-value investors toward Bitcoin, which many see as undervalued relative to gold amid rising inflation expectations and monetary expansion.

“As a global trade war continues to simmer, remember the primary tool governments have to compete is their money printer,” McMillin said. “M2 has the potential to skyrocket, and take gold and BTC with it.”

The Federal Reserve’s next interest rate decision and ongoing fiscal negotiations between Washington and Beijing are likely to remain key catalysts for Bitcoin in the weeks ahead.

Despite the surge, some traders remain cautious, pointing to historically high funding rates and declining on-chain activity as potential headwinds. 

Still, the macro narrative appears to be shifting in Bitcoin’s favor, for now.