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

This excerpt is from CoinDesk's 'Daybook' newsletter. Subscribe now for more insights. Bitcoin surged to $77,400, buoyed by positive earnings reports from major US tech firms, including Apple, Alphabet, Microsoft, Meta, and Amazon, which reported double-digit revenue growth. The upbeat earnings helped lift risk assets, as renewed confidence in AI growth drew investors back to equities and crypto. However, the rebound is largely driven by relief rather than a conviction that a new rally is underway. According to Mercado Bitcoin, the market faces short-term pressure due to mixed structural factors, such as reduced expectations of rate cuts, ETF outflows, and heightened geopolitical risk. Despite oil price surges and outflows from spot bitcoin ETFs, crypto prices held steady. The ongoing Iran conflict and disruption in the Strait of Hormuz could fuel inflation, making central banks less likely to cut interest rates, which may negatively impact crypto and other risk assets. The Federal Reserve's decision to maintain rates at 3.50%-3.75% and the lack of clear rate-cut signals led to a repricing of policy expectations. As the Fed's chairmanship is set to change, with Jerome Powell's term ending on May 15 and Kevin Warsh expected to take over, market volatility is anticipated. The key challenge for bitcoin remains breaking through the $80,000 resistance level, which could attract new buyers or trigger selling if leveraged long positions are unwound. For further analysis of altcoins and derivatives, visit Crypto Markets Today, and for a comprehensive list of upcoming events, see CoinDesk's Crypto Week Ahead.