Bitcoin Sees Uptick as Tech Earnings Boost Market Sentiment, Despite Persistent Short-Term Pressures

This excerpt is from CoinDesk's 'Daybook' newsletter. Subscribe now if you haven't already. Bitcoin rose to $77,400, following other risk assets higher after major US tech companies' earnings reports helped stabilize the markets. The gains followed Apple's earnings report, which, along with those of Alphabet, Microsoft, Meta, and Amazon, showed double-digit revenue growth. These reports bolstered risk assets and crypto, driven by renewed confidence in AI growth, although the current bounce is attributed more to relief buying than a new rally. According to Mercado Bitcoin, the market faces short-term pressure due to mixed structural factors, including decreased hopes for rate cuts, ETF outflows, and increased geopolitical risk. Despite oil price surges and over $400 million in outflows from spot bitcoin ETFs, crypto prices held steady. Higher oil prices, fueled by the Iran conflict, could lead to inflation, making central banks less inclined to cut interest rates and potentially weighing on crypto and risk assets. The Federal Reserve maintained rates at 3.50% to 3.75%, with four dissenting voices, the most since 1992. This decision led markets to reevaluate policy expectations. Mercado Bitcoin's head of research, Rony Szuster, noted that the market should remain volatile in the short term, reacting to economic data, and in the medium term, dependent on the stabilization of institutional flows and global monetary policy. The upcoming change in Fed chairmanship and potential tightening of monetary policy could induce volatility. A key test for bitcoin remains at $80,000, where a break could attract new buyers, and a failed attempt may trigger selling. For more analysis on altcoins and derivatives, and a list of upcoming events, refer to Crypto Markets Today and CoinDesk's Crypto Week Ahead.