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Bitcoin soared to $77,400, rising along with other risky assets after earnings reports from America’s biggest tech companies helped stabilize markets.
The gains came after Apple (AAPL) joined its peers with an earnings report that improved sentiment across the sector. The companies, which include Google parent Alphabet (GOOG), Microsoft (MSFT), Meta (META), and Amazon (AMZN), all reported double-digit revenue growth earlier this week.
Earnings reports contributed to the rise in risk assets, as renewed confidence in the growth of AI brought investors back to stocks and crypto, although the rebound so far reflects relief buying rather than the belief that a new rally has begun.
In a note shared with CoinDesk, cryptocurrency exchange Mercado Bitcoin said the market faces “near-term pressure with still mixed structural factors,” including reduced hopes for rate cuts, ETF outflows and higher geopolitical risk.
Crypto prices held steady this week even as oil rose and spot Bitcoin ETFs saw outflows of more than $400 million at the end of April.
Oil remains a key factor. Rising crude prices due to the Iranian conflict and disruptions in the Strait of Hormuz could fuel inflation, making central banks less willing to cut interest rates. This may weigh on crypto and other risky assets by making cash and bonds more attractive.
The Federal Reserve kept rates between 3.50% and 3.75% this week, although the four dissenting voices were the most since 1992. Mercado Bitcoin said the decision and the lack of clear signals of rate cuts led markets to reevaluate policy expectations.
“In the short term, the market is expected to remain volatile and very responsive 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 direction of global monetary policy.”
Jerome Powell’s Fed presidency ends on May 15 and Kevin Warsh is expected to chair the June FOMC meeting, which could lead to volatility given Warsh’s preference for tighter monetary policy.
The key criterion remains at $80,000. A breakout could attract new buyers, while a failure could trigger selling if leveraged long positions unwind. Stay vigilant!
Read more: For analysis of current altcoin and derivatives activity, see Crypto Markets Today. For a full list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
What is the trend
Signal of the day
The weekly Bitcoin price chart tests rejection at the $80,000 resistance zone, with the RSI showing early signs of a bullish divergence – the price printed a lower low while the RSI remained higher – although unconfirmed at the weekly close.
Failure to breach the threshold keeps the price range in a range between the 200-day exponential moving average of around $68,000 and this level.
