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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, along with those of Google's parent company Alphabet, Microsoft, Meta, and Amazon, all showed double-digit revenue growth. These reports boosted risk assets as renewed confidence in AI growth drew investors back to equities and crypto, although the current bounce seems to reflect relief rather than the start of a new rally. According to a note from crypto exchange Mercado Bitcoin, the market faces 'short-term pressure with mixed structural factors,' including reduced 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 held steady as April ended. The Iran conflict and disruption in the Strait of Hormuz have driven up crude prices, potentially fueling inflation and making central banks less likely to cut interest rates, which could negatively impact crypto and other risk assets by making cash and bonds more appealing.
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 term as Fed chairman ending on May 15 and Kevin Warsh expected to chair the June FOMC meeting, which could introduce volatility given 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.' The weekly bitcoin price chart is testing resistance at $80,000, with the RSI showing early signs of a bullish divergence, though this is unconfirmed on a weekly close. Failing to break above this level keeps the price range-bound between the 200-day exponential moving average of about $68,000 and $80,000.