This week saw a refreshing breakthrough of a long-blocked resistance level. Bitcoin's price rose 10.31% compared to the previous week (as of 0:00 on the 28th), breaking through the $95,000 level for the first time in two months.
Bitcoin showed an unusually strong performance starting from the 21st. On that day, the US market was in chaos following Donald Trump's tough statement about dismissing Jerome Powell, the Federal Reserve Chairman, for not cooperating with tariff policies.
The Federal Reserve's monetary policy decisions have an absolute impact on the market. If they make policy decisions according to the president's wishes without considering the market, market uncertainty could spiral out of control. For this reason, the Dollar Index (DXY) plummeted to its lowest level in the past three years.
Interestingly, while the Dollar Index was falling and gold prices were rising, Bitcoin suddenly showed price movements similar to gold, just like its old nickname 'digital gold'. Although it had been showing a solid performance compared to Nasdaq's decline in the past two weeks, this was the first time this year that it rose over 3% while Nasdaq was falling.
A timely positive factor emerged. The Trump administration, which had been maintaining a tough stance on China-related tariffs, suddenly began exploring the possibility of tariff reduction on the 23rd. Bitcoin's price, which had risen to around $91,000, immediately surged and temporarily broke through the $95,000 level the next day. This was the first time Bitcoin had risen above $95,000 since February 24th, two months ago.
ETH, which had been sluggish, rose 11%... SUI up 64.65%
A unique aspect of this rise was that prices of various coins rose evenly in a very short period. Ethereum (ETH), which had been underperforming, rose 11.22%, and Solana (SOL), which was about to drop below $100, completely recovered its buying momentum and rose 6.63% this week, climbing above the $150 level. The total cryptocurrency market capitalization also surged to the $3 trillion range.
Among the top 20 cryptocurrencies by market cap, Sui (SUI) showed the most remarkable rise. SUI rose 64.65% over the past week, benefiting from ecosystem activation and a Pokémon-related partnership.
Among meme coins, Official Trump (TRUMP) demonstrated its potential by surging 30% in just one day after announcing a dinner opportunity with President Trump. While the top 220 TRUMP holders are set to have dinner with the president, conflicts of interest are already being heavily debated, making the actual implementation uncertain.
While traditional cryptocurrency investors' purchases played a role in this rise, concentrated buying by Bitcoin spot ETF investors, who had been quiet this year, was crucial. They recorded five consecutive days of net capital inflows, purchasing Bitcoin worth $3.06 billion. Listed companies like Metaplanet, which have been buying Bitcoin whenever opportunities arise, also purchased additional quantities during the rise to $90,000.
Bitcoin's price, which was hovering above $95,000, has been fluctuating around the $93,800 level after a slight adjustment over the weekend. Can it maintain this price range without further adjustment? Or can it approach the symbolic resistance level of $100,000?
Analysts point out that this rise falls short of stablecoin issuance. Stablecoin issuance is an indicator deeply related to market buying pressure. If buying pressure cannot be sustained, Bitcoin, which has recorded a high price level after a long time, may potentially return to its previous price channel.
PCE announcement on the 30th, Japan's interest rate announcement on the 1st are important
With President Trump's statement about not imposing high tariffs on China, the influence of US tariff policies seems likely to subside for now. Consequently, the risk asset market will likely be significantly influenced by macro indicators that were previously forgotten.
This week, the US Personal Consumption Expenditures (PCE) price index will be announced on the night of April 30th. Since one of the main arguments for the current rise is whether the Federal Reserve will quickly cut interest rates, the PCE is a crucial indicator.
The Japanese interest rate announcement at noon on May 1st is also an important factor. Japan has been experiencing high inflation, with retail rice prices doubling. To control inflation, they should raise interest rates, but if Japan raises rates, there are concerns about the return of yen carry trade funds.
Additionally, it's worth watching whether the Trump administration will apply import car tariffs as scheduled on May 1st or 2nd. If they postpone tariffs instead of applying them as planned, the market is likely to interpret this as a weakening of tariff risks and rise. We wish our readers successful investments this week.
