Okay, let's be real. Hearing anything positive connected to Trump probably makes most of you reading this – especially my Gen Z peers – want to immediately close this tab. I get it. But stick with me. After all, sometimes, the universe has a dark sense of humor—and the most improbable things can open up… …possibilities.
Trade Truce Boosts Bitcoin
Here's the bizarre truth: Trump's recent comments hinting at a possible trade deal with China actually sparked a rally in both crypto and equity markets. I know, I know. It's enough to make you question everything. Bitcoin, the highly volatile digital asset sometimes described as a hedge against the financial system of old, has become a favorite among young, technologically savvy investors. Recently, it gained a second wind from unlikely turn of events.
The Bybit x Block Scholes report, Beyond UI/UX – Enhancing User Experience with Streamlined Processes, attests to the fact. Importantly, it demonstrates that Bitcoin, while appearing to decouple from the markets at first, surged more than 7% in the wake of Trump’s trade war announcement. The new report pinpoints the start of this rally to about April 21, 2025. Talk about irony.
Volatility Equals Opportunity Maybe
So, what's going on under the hood? Among other findings, the report highlights the increased short-tenor implied volatility and the upward shift of the put-call skew. Put another way, speculators are wagering on the price of Bitcoin to increase.
Perpetual futures open interest skyrocketed by 20% last week, with a focus on ETH, a sign of growing speculative fervor. This surge in activity was not limited to prices, as trading volumes spiked. April 7, 2025 recorded the highest daily volume for the entire month.
Now, here’s where the plot thickens – and quite dangerously. For Gen Z, most are still early on in their investment experiences. This level of volatility is at once terrifying and wonderfully liberating for them. The promise of shocks gains is just too damn beautiful. That appeal only increases when you’re staring down the barrel of student loan debt and a bad job market. Please, proceed with caution.
- Don't FOMO
- Research
- Diversify
Regulation Needed Now More Than Ever
Here's the cold, hard truth: This rally, fueled by political whims, is likely temporary. Bitcoin, although very sophisticated in many respects, remains highly vulnerable to market manipulation and mercenary capital. The reality that one of Trump’s offhand comments can make it double or half the initial value is an absurdity built into this system.
And that’s exactly why we urgently need stronger regulation of the crypto market. As a progressive, I believe nothing empowers a person more than the dollar they earn themselves, and financial technology can help with that. If true empowerment is to occur, the playing field must be quite literally leveled. We owe it to our most vulnerable investors to protect them against predatory practices. Bitcoin can be a tool of liberation that financially empowers people to own their own time. This can only happen with the right regulatory framework and responsible use.
The report itself even points to uncertainty. It was a terrific week for bitcoin. Open interest in puts, or bets that the price will decrease, outpaced calls, or bets that it will head up. That’s a sign the smart money isn’t entirely confident this rally will stick.
Let's not forget about ETH (Ethereum) either. ETH outperformed BTC by 1% over the last week in spot markets. Specifically, options data reveals ETH calls almost twice the puts in open interest, with calls dominating volume. This is an indication that traders are betting on ETH closing the gap with BTC and other rival chains.
So, what's the takeaway? That’s not a reason to rush out and buy Bitcoin with both hands just because Trump (of all people) uttered something complimentary on the subject of trade. Crypto market reminding us that it remains a fragile, volatile, and highly speculative market subject to compelling forces beyond its control.
This crypto rally inspired by Trump’s comments is just another example of crypto’s recent and powerful collision with global politics and economics. Many young investors from Gen Z see this as a once-in-a-lifetime opportunity. The key to making smart investment decisions with crypto is thinking long-term, having a diversified asset portfolio, and being critically optimistic. Let’s continue to advocate for strong regulations that put the public before wealthy, well-connected insiders.
This isn't a get-rich-quick scheme. It's a long game. Play it smart. Your future self will thank you.