Crypto Markets Rebound 9.9% in April, Led by Bitcoin
In april, the crypto market experienced a meaningful rebound, with a 9.9% gain. This positive shift was largely due to a pause in tariff discussions, according to a report by Binance Research.
Bitcoin (BTC) has been the star performer, further cementing its dominance. As of May 6, Bitcoin’s market share reached 63%, the highest as 2021. This trend has been ongoing as 2022. The growing narrative around Bitcoin as a strategic reserve adn digital gold has attracted more investors.
Historically, Bitcoin’s dominance has waned during broader bull markets. Though, April’s increase suggests a shift in how BTC is perceived, moving it closer to the financial mainstream.
A key factor behind Bitcoin’s rise is the increase in money supply. The M2 measure for the G4 countries is set to rise by $93 trillion. This expansion is seen as positive for Bitcoin, as it is viewed as a hedge against inflation.
Moreover, the rise in money supply adds liquidity to markets, benefiting crypto. Binance Research also noted a trend in centralized finance (CeFi). In the past two months, CeFi companies have raised more funds, partly due to shifting U.S. crypto regulations.
- Bitcoin dominance at 63% as of May 6
- M2 money supply projected to increase by $93 trillion
- CeFi companies attracting more investment
