The bull market is still intact
Bitcoin recovered strongly in April and closed the month above the crucial long-term average. Analysts are talking about an intact bull market, but it is too early to celebrate. In this edition of Bitvavo's Market News, we step back to look at the bigger picture and investigate what it will take for a lasting breakthrough.
Market update
The start of a new month is a good time to look at the market from a wider perspective. We zoom out from the noise of hours and minutes and focus on the months. The broader trends become clearer - more signal, less noise.
April was a decent month for Bitcoin. The price rose by 9% to a monthly close of ā¬83,200. On April 7, the price fell to ā¬67,400, well below the 12-month average. On the monthly chart, that average is the dominant average and reflects the long-term trend. A monthly close below that would have been a strong indication that the bull market was over.
But April 7th turned out to be the bottom. Since then, the short-term trend has reversed from downward to upward, and the long-term trend has stayed positive. So despite the uncertainty in the financial markets, the bull market is still intact.
You could interpret the months from November 2024 to April 2025 as a period of consolidation between the March 2024 high of ā¬67,400 and the ā¬100,000 milestone. If the coming months see a rally like those in October 2023, February 2024, or November 2024, Bitcoin could move well above ā¬100,000, finally breaking through that key level on the monthly chart too.
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Bitcoin's greener side
Bitcoin is still considered by some to be a polluting industry. But that image is changing. More and more data suggests that the network behind Bitcoin is becoming more sustainable. The renowned Centre for Alternative Finance at the University of Cambridge (CCAF) recently publishedĀ a new research report which shows that more than half of the energy used now comes from sustainable sources.
The report examined 49 mining companies, including major publicly traded players like Marathon and Riot. Together, they are responsible for almost half of the global computing power of the Bitcoin network; a significant sample.
So what did the report find? According to Cambridge, 52.4% of the energy used in Bitcoin mining is now sustainable. This figure includes 42.6% renewable sources, such as hydropower and wind, and 9.8% nuclear energy. This means that the share of fossil fuels is lower than is often assumed. Coal use has even dropped to below 9%, with natural gas now the largest fossil fuel source.
One striking change in the research method is that this time, off-grid miners were also included. These are companies that, for example, operate next to a hydroelectric power station or use excess gas at oil fields. This type of miner has proven to be more sustainable than most.
In addition to energy use, the report also looked at emissions and waste. According to the researchers, the COā emissions from Bitcoin mining amount to 0.08% of global emissions. And as much as 87% of decommissioned mining equipment is either reused or recycled; an important point in the debate around electronic waste.
The broader picture is also changing. Cambridge acknowledges that Bitcoin mining can help stabilize the electricity grid; for instance by adjusting power use during times of surplus energy production.
In short, the report underscores what experts and researchers have been seeing for some time: that Bitcoin mining is steadily evolving towards greater sustainability and efficiency. And that makes Bitcoin not just digital gold in the eyes of more and more people, but also perhaps a surprising ally in building a greener energy system.
In other news
Strategy doubles down on Bitcoin. The original ā21/21 Planā was doubled in early May to ā42/42ā. The goal: to raise $84 billion by 2027 ā half through shares, half through bonds ā to buy Bitcoin. The company now holds 553,555 BTC (2.6% of the total supply), purchased at an average of $68,448. According to Strategy CEO Phong Le, 70 publicly listed companiesĀ now have aĀ Bitcoin strategy.
Three major US financial giants take the next step into crypto. Morgan Stanley, Charles Schwab, and Goldman Sachs are significantly expanding their offerings:Ā Schwab aims to launch spot trading within a year,Ā Morgan Stanley is working on a rollout via E*Trade, andĀ Goldman is focusing on on-chain money market funds and lending. A clear signal: TradFi is gearing up for the next phase of crypto adoption.
Visa and Mastercard bringing stablecoin payments to the high street. Visa alongside Bridge (from Stripe) are launching payment cards that allow you to spend stablecoins at any merchant that accepts Visa. The rollout will start in Latin America, with global expansion planned. Meanwhile, Mastercard is building the infrastructure to accept stablecoin paymentsĀ at checkout, supported by partners including Circle, Paxos, and OKX, among others. Stablecoins are making the leap from wallets to shopping carts.
BlackRock: āIt's bitcoin first, and ethereum a distant second.ā With these words, BlackRock CIO Samara Cohen leaves no room for doubt: institutional investors are focused on Bitcoin, not Ether or altcoins. Speaking on the Empire podcastĀ she describes investors who, in a fragile economic climate, aren't chasing hype but seeking protection. Bitcoin is coming of age - and Wall Street is no longer looking away.Ā
Satoshi Radio: InĀ the latest episode of Satoshi Radio the hosts take an in-depth look at a war raging in the bitcoin community. The question of whether bitcoin can function solely as money is splitting the community into opposing camps. Plus, you'll hear the latest news - think the recent actions of Strategy and BlackRock - and of course, a neat market update.
This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.