April saw robust activity across cryptocurrency markets. Bitcoin posted an impressive monthly gain of nearly 12 percent, mirroring a sharp climb on U.S. stock exchanges amid strong earnings reports from leading tech giants. However, newly released inflation figures from the United States have left investors feeling cautious once again.
All-time highs in US indices
The S&P 500 index, the flagship measure of U.S. equities, soared to a historic high of 7,220 points after companies such as Google and Apple reported earnings that surpassed expectations. By the end of the day, the index closed about ten points lower. Investment analyst Charlie Bilello highlighted the index’s sustained growth, noting that the S&P 500 had stood at 5,600 points just a year ago, 4,200 five years prior, and only 2,100 a decade earlier.
The upbeat mood in the markets was fueled by robust results from the technology sector, pushing the S&P 500’s overall market capitalization up by over $8 trillion since late March.
Inflation concerns and the path of Bitcoin
Meanwhile, data from the U.S. Bureau of Economic Analysis revealed that the personal consumption expenditures (PCE) inflation rate reached 3.5 percent in March. This level is the highest seen since August 2023. As PCE is the Federal Reserve’s preferred inflation gauge, the figure drew particular attention from investors and policymakers.
Nevertheless, appetite for risk remained strong in both the stock and cryptocurrency markets. According to CryptoAppsy, Bitcoin finished April heading towards $77,500, delivering one of its most powerful monthly performances of the year so far.
Despite these gains, Bitcoin failed to firmly break through key support levels. Monthly closing figures from CoinGlass indicated that, even with an increase of 11.9 percent, the price has yet to consistently hold above its 21-week exponential moving average (EMA). This technical threshold has only been sustainably breached once since last October.
Market analyst Rekt Capital observed that the pullback in Bitcoin continues, adding: “If Bitcoin cannot establish a position above the EMA by the weekly close, this could be viewed as a strong rejection.” He also pointed out that a technical retest in the mid-$60,000 range would provide confirmation of a genuine upward breakout.
Strong risk appetite amid persistent uncertainty
Despite April’s rally, analysts caution that further technical indicators are needed to confirm the start of a lasting bull market. Volatile macroeconomic data and persistent inflation are keeping market sentiment in check.
The surge in U.S. inflation to a three-year high following tensions with Iran in March has heightened expectations for upcoming data releases. While Bitcoin wrapped up April with notable gains, it continues to struggle with surpassing key technical thresholds.
Analysts are closely watching both macroeconomic signals and technical levels to gauge the next move. In the current environment, both anticipation and uncertainty remain high across global markets.
