A tenth consecutive day of gains propels the Nasdaq upward, fueled by Bitcoin's dramatic breakthrough of the $74,000 threshold.
On Wednesday, the cryptocurrency market witnessed a significant surge in investor confidence, with Bitcoin managing to stay above the $74,000 threshold. This upward trend was mirrored in global financial markets, which continued to rebound from the losses incurred during the US-Iran tensions in late February. The CSI 300 index in China became the latest benchmark to fully recover from its conflict-driven losses, joining Taiwanese and Singaporean markets that had already returned to pre-crisis levels. Meanwhile, US equity markets displayed strong momentum, with the S&P 500 rising by 1.2% and the Nasdaq Composite surging 2%. The Dow Jones Industrial Average also made a notable contribution, with a 317-point increase. Notably, the S&P 500 has now delivered positive returns in nine out of the last ten trading sessions, bringing it close to its record peak established in late January. The Nasdaq, on the other hand, extended its winning streak to ten consecutive days, effectively eliminating year-to-date losses attributed to the Iran conflict.
The recent diplomatic developments have played a significant role in shaping market sentiment, with President Trump announcing the establishment of communication channels between Washington and Tehran. This news led to a decline in oil prices, which continue to trade below the $100 per barrel threshold, thus alleviating inflationary pressures that had challenged markets in March. In the cryptocurrency space, US spot Bitcoin ETFs saw a significant influx of $471 million on April 6, marking their strongest single-session performance since February. Cumulative inflows have now surpassed $56 billion since the debut of these investment vehicles in January 2024. Interestingly, Bitcoin's current trading price is hovering near the calculated average cost basis for ETF investors, which may serve as a support level, as investors who held positions during the decline below $60,000 have limited incentive to exit at or near their entry point.
According to Vikrant Sharma, founder of CakeWallet, "The massive influx of $471 million in a single day and the cumulative total surpassing $56 billion signifies that Bitcoin is attracting a new class of long-term investors." Ether, on the other hand, posted a 4% weekly gain, reaching approximately $2,325, outperforming Bitcoin's 3.9% weekly increase. However, the performance of alternative cryptocurrencies was inconsistent, with Solana declining 1.5% to $83, Cardano retreating 1%, and Dogecoin decreasing 1.3% to settle at $0.093. Tron, however, stood out with a 3% weekly appreciation.
Market observers are also factoring in expectations of potential Federal Reserve interest rate reductions later in the year, which could inject liquidity into risk-oriented assets and historically benefit both equities and digital currencies. Additionally, corporate earnings announcements are garnering attention, with Bank of America and Morgan Stanley scheduled to release quarterly results before Wednesday's market opening. As of Tuesday evening, US stock index futures remained relatively stable, with contracts linked to the S&P 500, Nasdaq 100, and Dow Jones trading near unchanged levels.