In a segment from CoinDesk’s ‘Daybook’ newsletter, Bitcoin surged to $77,400, aligning with other risk assets as earnings reports from major U.S. tech firms bolstered market confidence.
This upturn followed Apple’s (AAPL) earnings report that enhanced the industry sentiment, joining its peers like Google parent Alphabet (GOOG), Microsoft (MSFT), Meta (META), and Amazon (AMZN) in announcing double-digit revenue growth this week.
These reports spurred risk assets as renewed optimism regarding AI-driven growth lured investors back into equities and cryptocurrencies. However, the current recovery appears to be driven by relief buying rather than a solid belief in a new rally’s inception.
Crypto exchange Mercado Bitcoin noted that the market is contending with “short-term pressure amid still-mixed structural factors,” such as diminished hopes for rate cuts, ETF outflows, and elevated geopolitical risks. Despite these challenges, crypto prices held steady this week even as oil prices rose sharply and spot bitcoin ETFs experienced over $400 million in outflows at April’s end.
Oil prices remain crucial, with hikes due to the Iran conflict and disruptions in the Strait of Hormuz potentially driving inflation and making central banks less inclined to reduce interest rates. This scenario could adversely impact crypto and other risk assets by enhancing the appeal of cash and bonds.
The Federal Reserve maintained its rate at 3.50% to 3.75%, with four dissenters marking the highest since 1992. Mercado Bitcoin pointed out that this decision, along with a lack of clear signals for rate cuts, prompted markets to adjust policy expectations.
“In the short term, volatility is expected as markets react strongly to economic data,” remarked Rony Szuster, head of research at the company. “Medium-term stability hinges on institutional flows and global monetary policies’ trajectory.”
With Jerome Powell’s tenure ending on May 15, Kevin Warsh is anticipated to lead the June FOMC meeting, potentially causing volatility due to his preference for tighter monetary policy.
The crucial test remains at $80,000; surpassing this threshold might attract new buyers, while a failure could trigger selling if leveraged positions are liquidated. Investors should remain vigilant!
For further analysis on today’s activity in altcoins and derivatives, refer to Crypto Markets Today. For an extensive list of upcoming events, see CoinDesk’s “Crypto Week Ahead.”
The weekly bitcoin price chart indicates a test at the $80,000 resistance level, with RSI showing early signs of bullish divergence—though it remains unconfirmed on a weekly close. If unable to break above, prices may remain bounded between approximately $68,000 and the 200-day exponential moving average.