Bitcoin climbed for a third straight day amid a broad market rebound after President Donald Trump took a softer stance on China tariffs and toned down his criticism of Federal Reserve Chair Jerome Powell.

According to Coin Metrics, the leading cryptocurrency rose 2.4% to $93,660, after reaching an intraday high of $94,499.86 — its strongest level since March 3.

Bitcoin has now recovered over half of its losses since Inauguration Day and is trading just below breakeven for the year.

“This recent surge primarily reflects a market seizing the opportunity to capitalize on a dip in an asset that consistently proves its value as a compelling option for portfolio diversification and hedge against macroeconomic uncertainty and U.S. dollar volatility,” Joel Kruger, market strategist at LMAX, told CNBC.

On Tuesday, Bitcoin exchange-traded funds saw a surge in inflows as investors turned to the cryptocurrency as a hedge against ongoing stock market volatility and a weakening dollar.

According to SoSoValue, Bitcoin ETFs recorded $936.43 million in daily inflows—their highest since January 17.

Bitcoin’s rally this week has triggered a wave of short covering, with short sellers rushing to buy back the cryptocurrency to close their positions—further fueling the price surge.

Over the past 24 hours, more than $300 million in bitcoin short positions have been liquidated across exchanges, according to CoinGlass.