Risk-On Rotation Lifts Bitcoin, But It’s Still a Volatile Ride

May’s rally shows momentum is back, but macro signals aren’t fully clear yet

Bitcoin is taking a breather, trading about 5% below its all-time high. That’s not unusual, especially after the kind of sharp rebound we saw in May.

But to really understand what this move means, we need to look at how Bitcoin performed relative to other macro assets. That perspective helps clarify Bitcoin’s role in a portfolio and tells us something about where we are in the broader risk cycle.

In this issue, we’ll break that down from three angles: how Bitcoin fits into the recent risk-on rotation, how it compares on a risk-adjusted basis, and what the NASDAQ’s trend signals about the macro backdrop.

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Risk-On Rotation Lifts Bitcoin, But It’s Still a Volatile Ride

The Takeaway

Bitcoin rallied strongly in May alongside a broader surge in risk assets, confirming a shift toward renewed investor appetite for high beta exposure.

But while returns were impressive, Bitcoin still lags gold on a risk-adjusted basis, reflecting its persistent volatility.