Bitcoin resumed its growth after the market’s sharp reaction to new US inflation data. While American stocks were hitting all-time highs, BTC once again approached $80,000 and maintained its chances of moving toward the $84,000–85,000 zone.
The market is gradually ceasing to see persistent inflation as a reason to panic. Investors continue to actively move into risk assets, despite the likelihood of a longer period of high Fed rates.
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US Stock Market Sets New Records Again
After the release of new inflation data, many expected increased pressure on stocks and cryptocurrencies. However, the opposite happened.
The S&P 500 closed at a new all-time high and continued to rise on Thursday. The Dow Jones index climbed above 50,000 points again for the first time since early February.
Analysts at The Kobeissi Letter noted that risk appetite in the market is ‘growing rapidly.’ This is especially noticeable in the leverage sector. Assets under management in US leveraged ETFs have already reached a record $177 billion.
Since the March low, the amount of funds in such instruments has increased by about $45 billion. This shows that investors continue to aggressively increase risk even amid tight monetary policy.
Money Supply Continues to Grow
An additional boost to the markets comes from the growth of global liquidity.
According to The Kobeissi Letter, the US M2 money supply has grown by about $1 trillion over the year and reached a record $22.7 trillion. The growth rate has accelerated to 4.6% year-over-year.
For the crypto market, this remains an important factor. Historically, liquidity growth has often supported bitcoin and tech assets even during periods of high inflation.
Against this backdrop, some traders believe the market is starting to look beyond the current Fed policy and is pricing in expectations of future easing.
Bitcoin Holds Key Level
After the decline, BTC was quickly bought up around the $79,000–79,500 zone. Many analysts now call this range the main support level for continued growth.
Trader Daan Crypto Trades noted that bitcoin is holding the previous April highs, which now serve as an important defense zone for buyers.
At the same time, the 200-period moving averages on the four-hour chart continue to rise toward the current price. This indicates a gradual strengthening of the market structure after the April recovery.
$85,000 Target Remains Relevant
If bitcoin maintains current support, the market may quickly return to growth toward $84,000–85,000. That is where the 50-week EMA is currently located — one of the main technical benchmarks for medium-term traders.
Analyst CrypNuevo called the current area ‘the most important level’ for BTC in recent weeks. In his opinion, holding the range opens the way to a new phase of growth.
At the same time, losing support could send the price back to the middle of the range, with the risk of falling to the lower boundaries of consolidation.
Oil Remains a Separate Risk
The geopolitical situation around Iran continues to put pressure on global markets. WTI oil again tested the $100 per barrel mark, although it has not yet managed to stay above it.
For the crypto market, this creates a mixed backdrop. On the one hand, high oil prices increase inflation risks and complicate the Fed’s task. On the other hand, investors are still ignoring these threats and are betting on continued high liquidity.
That is why the market now appears especially sensitive to any macroeconomic news.
What’s Next?
The coming days could be key for bitcoin’s structure. If BTC holds above the $79,000–80,000 zone, the market will have a technical base for a new test of $84,000–85,000.
Amid record S&P 500 levels and rising liquidity, this scenario looks increasingly likely. But if the macro backdrop worsens or a new wave of inflation expectations emerges, pressure on risk assets could quickly return.
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