Bitcoin stabilizes after surge, sees volatility risks

2 May 2025

Today’s markets analysis on behalf of Konstantinos Chrysikos, Head of Customer Relationship Management at Kudotrade

Bitcoin stabilized to a certain extent, hovering above the USD 96,000 level, following its recent surge. The cryptocurrency benefited from a series of strong inflows into Bitcoin ETFs as well as a decline in confidence in the US dollar amid the uncertainty around US policies and officials’ comments. In this regard, traders could remain cautious ahead of US economic data.

The NFP data could affect sentiment and fuel more volatility in the case of a surprise. Weaker-than-expected figures could weigh on the market as traders focus on a potential economic slowdown and could seek safe-haven assets. Sentiment could remain tense after this week’s weak US economic data.

However, Bitcoin could also benefit from a detente in trade tensions between the US and China as talks could fuel risk-driven markets, including cryptocurrencies. As a result, the market could remain sensitive to any new developments and comments from both sides.

Meanwhile, BTC ETF inflows could continue to support the cryptocurrency in addition to large purchases from companies like Metaplanet. The latter has announced the issuance of USD 24.7 million in bonds to acquire BTC with the aim of accumulating 10,000 Bitcoins by year-end.