The price of Bitcoin surpassed the $79,000 mark on April 27, driven by increased interest in the cryptocurrency from investors and a significant influx of funds into spot Bitcoin ETFs in the U.S. This week, a key event for the market will be the meeting of the Federal Open Market Committee (FOMC) on April 29, where a decision regarding interest rates will be announced.
This is reported by Finway
Main Drivers of Market Growth
According to analysts, the strong rise in Bitcoin is linked to several factors. Firstly, over the past four weeks, spot Bitcoin exchange-traded funds have shown a steady influx of capital: last week, this figure reached $980 million. Secondly, a technical breakthrough of key levels has supported positive sentiment among traders. Finally, a decrease in geopolitical tension has contributed to a weakening of defensive sentiment, which traditionally encourages investors to seek riskier assets.
At the time of preparing this material, Bitcoin was trading at $77,688, according to TradingView data. Alongside this growth in the digital asset market, there was significant activity in the futures contracts segment: the total amount of liquidations reached nearly $288 million, of which $172.68 million was attributed to short positions, and $115.28 million to long positions. Over the course of a day, more than 84,000 traders suffered losses. Significant losses were recorded among positions in Bitcoin ($93.01 million) and Ethereum ($110.42 million).
“The growth of the crypto market is driven by stable inflows into ETFs and a structural breakthrough of key technical levels, confirming strong underlying demand. At the same time, the decrease in geopolitical tension has weakened defensive sentiment, and the fear and greed index has shifted from fear to neutrality.”
Investor Sentiment and Anticipation of the Fed’s Decision
The fear and greed index in the crypto market has dropped to 44 points, indicating a transition from the ‘fear’ zone towards a ‘neutral’ position. For comparison, just a week ago, this figure was 12 points higher.
Director of LVRG Research Nick Rack emphasizes that the further movement of Bitcoin’s price will depend on the resilience of demand in the spot market, as well as whether the cryptocurrency can maintain a level above $80,000–$83,000. Among other factors that market participants are paying attention to, the cancellation of the U.S. mission to Pakistan for dialogue with Iran had little impact on quotes, while the continuation of the ceasefire was viewed positively.
Analysts believe that the market has already priced in most geopolitical risks. Presto Research analyst Min Zhong notes that this week, the main focus will be on the FOMC meeting and the financial results of major tech companies, which could be decisive for the further movement of the market.
Since the beginning of the year, spot Bitcoin ETFs have attracted nearly $2 billion in investments, indicating high interest in crypto assets despite market volatility.