Bitcoin rebounded toward the $80,000 mark on Thursday as global risk appetite strengthened and major US stock indexes climbed to fresh record highs despite elevated inflation concerns.
Market data showed Bitcoin recovering most of the losses recorded a day earlier after stronger-than-expected US inflation figures initially pressured risk assets. However, investor sentiment improved quickly as Wall Street markets continued their rally.
The S&P 500 posted another record closing high, while the Dow Jones Industrial Average briefly revisited the 50,000-point level for the first time since February.
Market analysts said investor risk appetite remains strong despite concerns surrounding tighter monetary policy from central banks. Trading analysis platform The Kobeissi Letter noted that assets under management in leveraged ETFs surged to a record $177 billion, reflecting growing market confidence.
The report also highlighted continued expansion in the US money supply, with M2 money supply reportedly increasing by $1 trillion year-on-year to a record $22.7 trillion, a trend often viewed as supportive for cryptocurrencies and other risk assets.
Meanwhile, oil markets remained volatile amid geopolitical tensions, with WTI crude oil retesting the $100-per-barrel level.
Crypto traders said Bitcoin is currently trading near a crucial support zone around $79,400. Analysts believe maintaining this level could pave the way for a move toward the $84,000 to $85,000 range in the coming weeks.
Market commentator Daan Crypto Trades described the current price area as a “pivotal level,” while trader CrypNuevo said holding above recent range highs could support a push toward the 50-week exponential moving average near $85,000.
However, analysts also warned that failure to maintain current support levels may trigger a broader correction toward lower trading ranges.
