Bitcoin 'panic has faded,' but rally past $75,000 hinges on three catalysts
Three things will drive Bitcoin back above $75,000, industry insiders say.
Investors remain bullish despite war, with the S&P500 shooting back to its peak.
Bitcoin’s next rally hinges on three things.
Max Kahn, CEO of investment adviser Digital Wealth Partners, argues that the biggest cryptocurrency’s move toward $75,000 appears to be driven by a combination of macro and structural factors rather than any single catalyst.
As the top crypto hovers around $74,000 — up 8% over the past two weeks — traders have poured in $523 million into exchange-traded funds in April, underscoring what Kahn describes as a structural bid that did not exist in prior cycles.
Khan’s call comes as Bitcoin investors are increasingly betting that the conflict in the Middle East will deescalate. While Washington has ramped up the rhetoric against Tehran, market watchers argue that the reality shows that tensions are easing back to pre-conflict levels.
That’s “a signal that panic has faded even if uncertainty has now,” digital asset trading firm QCP wrote in a note to investors on Monday.
Investors of more traditional assets have also regained some of their pre-conflict bullishness.
“So as far as the stock market is concerned, the war is over until further notice,” argues Ed Yardeni, president of Yardeni Research. “It has been yet another V-shaped buy-the-dip recovery.”
Here are Kahn’s key watchpoints for Bitcoin as traders eye the next move up.
Inflation and Fed
To be sure, investors still have reasons to be worried.
On Tuesday, the International Energy Agency sharply lowered its forecasts for global oil supply and demand growth. It warned that both will fall from last year’s levels as the US-Israel war with Iran disrupts flows and drags down the global economy.
Higher inflation stemming from the conflict means central banks around the world will consider increasing interest rates. Higher rates mean less money supply to support risky assets like Bitcoin.
But when inflation appears contained, markets lean toward a more accommodative Federal Reserve. That environment historically fuels risk assets.
“When markets begin to price in a more stable or accommodative rate environment, we tend to see increased appetite for Bitcoin,” Kahn said.
Institutional bid
At the same time, positive structural demand continues to support the Bitcoin market.
Bitcoin ETFs enjoyed their best month since October in March, according to DefiLlama data. April is on track to be yet another positive month.
The ongoing institutional involvement, including steady inflows through regulated investment products, provides a price floor.
“That’s helping support price levels even amid broader market uncertainty,” he said.
Bitcoin is increasingly viewed through two lenses, he adds: a macro-sensitive risk asset in the short term and a "digital gold" store of value in the long term.
Michael Saylor, the executive chairman of digital asset treasury Strategy, shares Kahn’s optimism.
On Monday, the firm reported buying another $1 billion worth of Bitcoin, bringing its stash to about $58 billion.
Crypto market movers
Bitcoin is down 1.1% over the past 24 hours, trading at $74,000. Ethereum is down 2.6% over the past 24 hours at $2,326.
