Bitcoin nears two-month high amid shifting market trends – Crypto News – Crypto News
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Bitcoin nears two-month highs amid shifting market trends Bitcoin nears two-month highs amid shifting market trends

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Bitcoin nears two-month high amid shifting market trends – Crypto News

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Bitcoin increased in value against fiat currencies by 11% between April 20th and April 26th, holding close to its two-month high of around $94,000. Its rally followed signs from the Trump administration about potential tariff reductions and was supported by strong corporate earnings reports.

Investor interest in Bitcoin was also reflected in record inflows into spot Bitcoin exchange-traded funds (ETFs), which collected $3.1 billion in net investments over five days. However, there was some caution in the derivatives market, where a key futures indicator showed hints of bearish sentiment, raising fears about Bitcoin’s capability to reach the $100,000 mark.

Perpetual futures contracts, a popular instrument among retail traders due to their close link to spot prices, demonstrated unexpected movements. A positive funding rate generally suggests more buyers than sellers, but on April 26th, the rate turned sharply negative, indicating more seller demand. This kind of shift is rare during bullish trends. While fluctuation in funding rates had been noted since mid-April, short sellers were caught off guard when Bitcoin’s price capped $94,000, resulting in the liquidation of over $450 million in short positions since April 21.

Broader market dynamics also played a role. The S&P 500 posted a 7.1% gain during the week, boosting overall market sentiment. However, uncertainty resurfaced after US President Donald Trump stated that ongoing trade negotiations with China would depend on further concessions—causing some traders to question how sustainable recent rallies might be.

First-quarter earnings reports — largely covering periods before the latest trade tensions escalated — suggest that the forces driving traditional markets and Bitcoin may now be diverging. The 30-day correlation between the S&P 500 and Bitcoin has fallen to 29%, down from about 60% earlier in the year. While Bitcoin’s performance remains influenced by broader economic trends, the lower correlation points to a growing independence from traditional asset classes.

Bitcoin’s standing as an independent asset has strengthened further with developments in other markets. Gold, which reached a record $3,500 per ounce on April 22nd, has struggled to maintain momentum. Bitcoin’s ability to stay above the $90,000 mark has helped reinforce its position as a distinct investment category separate from equities and traditional safe-haven assets.

Professional traders’ participation in the derivatives market has been more bullish than what perpetual futures alone suggest. Unlike perpetual contracts, monthly Bitcoin futures have set funding costs, making them a preferred choice for some institutional participants. On April 26th, the premium for two-month Bitcoin futures climbed to 6.5%, the highest in seven weeks. Although the trend remains in the neutral range of 5% to 10%, it signals growing interest in bullish strategies.

Retail traders remain cautious, but institutional buying appears to be gaining attraction. Even if sentiment in the perpetual futures market stays mixed, accumulation by larger investors could provide enough support to push Bitcoin closer to the $100,000 mark in the coming weeks.

(Photo by André François McKenzie)

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