Bitcoin Surges 28% From April Low, Reaches $97,000

Bitcoin, the leading cryptocurrency by market capitalization, began May with a strong performance, reaching its highest level since late February. This surge came as investors across financial markets showed renewed appetite for risk. On May 1, Bitcoin experienced a significant increase, rising from a low of $94,115 to a high of $97,483, marking its highest point since February 21. This rebound followed two consecutive days of decline at the start of the week.

Bitcoin's recovery has been substantial, with the cryptocurrency regaining almost 21% from its February low of $78,900 and approximately 28% from its early April low of $75,000. The upward trend continued into early Friday's session, with Bitcoin up 0.24% in the last 24 hours to $96,903, after reaching intraday highs of $97,059. This performance has reversed Bitcoin's weekly losses, positioning it with a 2.49% gain over the past seven days.

The recent price surge to $97,000 has had a notable impact on short-term holders (STHs) of Bitcoin. According to on-chain analytics firm Glassnode, the cost basis ribbon for STHs indicates that investors holding BTC for over one month have returned to profitability. This development is significant as it reduces sell pressure from older STHs and may signal early signs of positive market momentum if sustained.

On the macroeconomic front, nonfarm payrolls increased by a seasonally adjusted 177,000 for the month, slightly lower than the revised 185,000 in March but higher than the estimated 133,000. The unemployment rate remained stable at 4.2%, as projected, indicating a generally stable job market. This report comes ahead of the Federal Reserve's policy meeting scheduled for May 6 and 7. Markets broadly expect the Fed to maintain its benchmark short-term borrowing rate unchanged at this meeting, with a quarter-point decrease anticipated in June and potentially two or three more reductions by the end of the year.