Bitcoin Can Still Hit $85,000 as Stocks Head to New All-Time Highs

Bitcoin (BTC) touched $80,000 around Thursday’s Wall Street open as US stocks hit fresh all-time highs and oil retested $100.

Key points:

Bitcoin rebounded to $80,000 while US stock markets hit new records, ignoring high inflation.Risk appetite is “skyrocketing,” analysis says, despite worries over central-bank policy tightening.Bitcoin can still head to $85,000 next, traders agree.

Bitcoin recoups losses as US stocks ignore inflation

Data from TradingView showed BTC/USD recovering much of the previous day’s losses, which followed some of the highest US inflation data in four years.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

US stocks quickly shook off the numbers, despite the implications for future financial policy tightening.

The S&P 500 posted its highest daily close on record, and continued to surge on Thursday. The Dow Jones Industrial Average revisited 50,000 points for the first time since early February.

S&P 500 versus Dow Jones one-day chart. Source: Cointelegraph/TradingView

Commenting, trading resource The Kobeissi Letter reported “skyrocketing” risk appetite among investors.

“Assets under management (AUM) in US leveraged ETFs are up to a record $177 billion. Since the March bottom, total leveraged ETF AUM has surged +$45 billion,” it wrote in its latest analysis on X.

Leveraged ETF AUM data. Source: The Kobeissi Letter/X

Kobeissi used the same term to describe global money-supply growth — a crypto and risk-asset tailwind at odds with concerns that central banks were adopting a “hawkish stance.”

“Meanwhile, US M2 money supply jumped +$1 trillion YoY, or +4.6%, to a record $22.7 trillion,” it continued.

“Money supply growth is accelerating.”

Global money supply data. Source: The Kobeissi Letter/X

As the US-Iran war rumbled on, oil prices seemed unable to crack new highs, with WTI crude retesting the $100 per barrel mark from above.

CFDs on WTI crude oil one-day chart. Source: Cointelegraph/TradingView