Bitcoin remains steadfast at approximately $77,000 as anticipation builds for Jerome Powell’s final press conference as chair of the Federal Reserve. This period is marked by renewed risk appetite among traders, according to Zaheer Ebtikar, founder of Split Research, who shared his insights with DL News. Ebtikar notes a shift in the market sentiment, stating, “The sellers who were spooked by macro shifts or quantum fears have already exited. Bitcoin has found a stable floor and moved away from headline-driven drama and toward a more mature phase of growth.”
These comments coincide with a budding optimism within the cryptocurrency sector. Over the last month, Bitcoin has surged by nearly 15%, contributing to an impressive increase of about $400 billion in total market value within the cryptocurrency realm since February, as reported by CoinGecko data. However, despite this rally, Bitcoin still languishes nearly 40% below its peak in October, even as traditional markets like the S&P 500 reached new highs in April alongside other assets, such as gold and oil.
Increased inflows into Bitcoin exchange-traded funds (ETFs) paint a promising picture for the cryptocurrency market. In April alone, U.S. spot Bitcoin ETFs experienced over $2 billion in net inflows, marking a second consecutive month of positive growth, according to DefiLlama data. This follows March’s gain of $1.3 billion, signaling a revitalized interest in Bitcoin amid the current quieter trading conditions. Ebtikar remarked, “Since we’re currently in a quieter trading range, there’s no immediate rush for the exits.”
As this enthusiasm unfolds, it coincides with a significant moment in U.S. economic policy. Powell is expected to announce that interest rates will remain unchanged in what economist Ed Yardeni describes as his “swan song.” The concerns surrounding inflation, particularly with Brent crude oil prices rising back above $100 per barrel amid stalled U.S.-Iran peace talks, complicate any immediate prospects for rate cuts. Lower interest rates typically foster favorable conditions for riskier assets like Bitcoin, as the lower yields on bonds disincentivize investors from holding those securities.
Powell’s term as chair is set to conclude on May 15, although he will serve as a Fed governor until January 2028. The Senate Banking Committee is poised to confirm Kevin Warsh as his successor, with a final vote expected shortly. Warsh has advocated for earlier rate cuts but has committed to maintaining independence from political influences.
As the market watches closely, Bitcoin has increased by 0.5% in the last 24 hours, currently priced at $77,031. Meanwhile, Ethereum has seen a rise of 2.1% over the past few hours, now trading at $2,323. Attention to these developments is expected to shape investor behavior as both the crypto market and broader economic landscape evolve.
