Big Tech Earnings Saved It…Bitcoin Starts Rising Again

▲ Bitcoin (BTC), Nasdaq (NASDAQ)/ChatGPT generated image ©

Bitcoin has rebounded, recovering to 76,000 dollars again, but its upward momentum still appears to be heavily influenced by macroeconomic variables.

According to investment media FXStreet on May 1 (local time), Bitcoin (BTC) re-surpassed 76,000 dollars, buoyed by the strong earnings reports of major Big Tech companies. The risk-on sentiment triggered in Wall Street spread to the cryptocurrency market, leading to a price rebound.

This surge was driven by major companies including Google's parent company Alphabet, Amazon, Microsoft, and Caterpillar, all of whom announced better-than-expected earnings. In particular, the growth of the cloud business due to increasing demand for artificial intelligence (AI) stimulated investor sentiment, causing the S&P500 index to rise by 73 points and other major indices like Nasdaq to also climb.

In this trend, Bitcoin reconfirmed its high correlation with technology-focused indices. Recently, BTC has been moving in a similar direction to tech indices like Nasdaq, showing strengthened linkage with traditional financial markets. While expectations of 'decoupling' were once raised during the US-Iran conflict, with Bitcoin showing relative strength, this rebound sees it once again following the trend of risk assets.

However, it is uncertain whether the upward trend will continue. Geopolitical tensions in the Middle East and inflationary pressures continue to weigh on the market. In particular, the significant divergence of opinions within the Federal Open Market Committee (FOMC) during the Federal Reserve's interest rate freeze process increases uncertainty about policy direction.

Bitunix analysts stated, "The current market is more concerned about the possibility of stagflation with persistent inflation than a simple recession. In this scenario, expectations for interest rate cuts would weaken, and risk assets, including Bitcoin, could see limited upward movement amidst high volatility." Indeed, US Treasury yields remain high, and expectations for interest rate cuts have not significantly expanded.

Currently, Bitcoin is trading at approximately 76,400 dollars, up over 1% in 24 hours. However, the market maintains a cautious stance, looking to confirm changes in the macroeconomic environment, separate from the short-term rebound.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*