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Bitcoin climbed to $77,400, joining other risk assets higher after earnings reports from the largest U.S. technology companies helped stabilize markets.
Apple shares rose after Apple joined peers in releasing an earnings report that improved sentiment across the industry. Those companies include Google parent Alphabet (GOOG), Microsoft (MSFT), Meta (META) and Amazon (AMZN), all of which reported double-digit revenue growth earlier this week.
The earnings report helped risk assets rise as new confidence in the artificial intelligence growth story puts investors back into stocks and cryptocurrencies, although the rebound so far reflects relief buying rather than belief that a new rally has begun.
In a report shared with CoinDesk, cryptocurrency exchange Mercado Bitcoin said the market is dealing with “short-term pressures that remain complicated by structural factors,” including fading hopes for rate cuts, ETF outflows and rising geopolitical risks.
Cryptocurrency prices have remained steady this week despite soaring oil prices and over $400 million in outflows from spot Bitcoin ETFs in late April.
Oil remains a key factor. Rising crude oil prices due to the Iran conflict and disruptions in the Strait of Hormuz could fuel inflation and make central banks less willing to cut interest rates. That could make cash and bonds more attractive, putting pressure on cryptocurrencies and other risk assets.
The Federal Reserve this week kept interest rates at 3.50% to 3.75% despite four dissenting voices, the most since 1992. Mercado Bitcoin said that this decision and the lack of clear signal of interest rate cuts caused the market to repricing policy expectations.
“In the short term, markets should remain volatile and highly responsive to economic data,” said Rony Szuster, the firm’s head of research. “In the medium term, the structure remains dependent on the stability of institutional flows and the path of global monetary policy.”
Jerome Powell’s term as Fed chairman ends on May 15 and Kevin Warsh is expected to chair the June FOMC meeting, which could spark volatility given Warsh favors tightening monetary policy.
Critical testing remains $80,000. A breakout could attract new buyers, while a failed move could trigger a sell-off if leveraged longs unwind. Stay alert!
Learn more: For analysis of today’s altcoin and derivatives activity, see Today’s Cryptocurrency Markets. For a complete list of this week’s events, see CoinDesk’s “Crypto Week Ahead.”
what is trend
today’s signal
The weekly chart for Bitcoin price is testing resistance in the $80,000 resistance zone, with the RSI showing early signs of a bullish divergence – with the price recording lower lows while the RSI remains higher – although this has yet to be confirmed at the weekly close.
Failure to move above this level will see the price trade between the 200-day exponential moving average around $68,000 and this level.