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Bitcoin reached $77,400, rising alongside other risk assets after major US tech companies' earnings reports stabilized the market. The gains followed Apple's earnings report, which enhanced sentiment across the industry, similar to peers like Alphabet, Microsoft, Meta, and Amazon, all of which reported double-digit revenue growth. The earnings reports boosted risk assets as renewed confidence in AI growth drew investors back to equities and crypto. However, the current bounce seems to reflect relief buying rather than the start of a new rally.
According to crypto exchange Mercado Bitcoin, the market is experiencing 'short-term pressure with mixed structural factors,' including decreased hopes for rate cuts, ETF outflows, and higher geopolitical risks. Despite oil prices surging and over $400 million in outflows from spot bitcoin ETFs, crypto prices remained stable as April ended. Oil prices, influenced by the Iran conflict and disruptions in the Strait of Hormuz, could fuel inflation, making central banks less likely to cut interest rates. This could negatively impact crypto and other risk assets by making cash and bonds more attractive.
The Federal Reserve maintained rates at 3.50% to 3.75%, with four dissenting voices, the most since 1992. Mercado Bitcoin noted that the decision and lack of clear rate-cut signals led to a repricing of policy expectations. 'In the short term, the market is expected to remain volatile and highly reactive to economic data,' said Rony Szuster, the company's head of research.
'In the medium term, the structure remains dependent on the stabilization of institutional flows and the path of global monetary policy.' With Jerome Powell's chairmanship at the Fed ending on May 15 and Kevin Warsh expected to chair the June FOMC meeting, volatility may increase due to Warsh's preference for tightening monetary policy. The key test for bitcoin remains at $80,000; breaking this level could attract new buyers, while a failed attempt may trigger selling if leveraged long positions are unwound. For analysis of today's altcoin and derivatives activity, see Crypto Markets Today, and for a comprehensive list of this week's events, see CoinDesk's Crypto Week Ahead.
Currently trending: The weekly bitcoin price chart is testing resistance at $80,000, with the RSI showing early signs of a bullish divergence, although this is unconfirmed on a weekly close. Failure to break above this level keeps the price range-bound between the 200-day exponential moving average of about $68,000 and $80,000.