Bitcoin Stages Dramatic Comeback - Recovers 46% Losses After Trump Softens China Stance

Bitcoin just pulled off its most impressive recovery rally of the year, clawing back nearly half its recent losses in a stunning reversal that caught bears off guard.

The Trigger: Geopolitical Thaw

Former President Trump's unexpected softening toward China sent shockwaves through markets - and Bitcoin rode the wave straight up. The digital asset surged as traders interpreted the diplomatic shift as bullish for global trade and risk assets.

Technical Breakout Confirmed

That 46% rebound wasn't just a dead cat bounce. Bitcoin smashed through multiple resistance levels, proving once again that crypto moves faster than traditional finance can even process the news.

Institutional Money Returns

While retail traders were still checking their portfolios, smart money was already positioning for the next leg up. The recovery suggests major players see this as more than temporary relief.

Because nothing says 'stable monetary policy' like a digital asset that can recover half its value based on a single politician's tweet. Welcome to the future of finance - where volatility isn't a bug, it's the main feature.

Image source: Getty Images.

There are risks for Applied Digital and the data center build-out

Despite the bullish quarterly report, investors should be aware of the risks. The company currently has a heavy debt burden and will need to incur more borrowing at elevated interest rates or dilute its shareholders by issuing additional stock as it funds the building of expensive data centers. The potential for Applied Digital and the data center market is large, but so are the risks.

I WOULD stay away from Applied Digital stock at this point.