Bitfinex Report: Bitcoin Closes Strong in April with 14.08% Gain
The cryptocurrency exchange Bitfinex released a report indicating that Bitcoin closed strongly in April with a gain of 14.08%. This performance not only surpassed Bitcoin’s historical average April return but also marked the best month of the year so far. If it can hold key price levels, there is potential for new highs.
(Background: Huang Renxun to buy Bitcoin? Market rumors suggest Nvidia is considering purchasing BTC as part of its AI strategy. How credible is this?)
(Context: U.S. non-farm payrolls exceeded expectations in April! Bitcoin is nearing $98,000, and the S&P has posted nine consecutive gains, setting a 20-year record.)
Bitfinex’s Market Analysis Report
On May 5, the cryptocurrency exchange Bitfinex published its latest market analysis report titled Strong April Close Sets Up Bitcoin for Summer, indicating that although Bitcoin faced significant challenges at the beginning of April, it ultimately closed strong with a gain of 14.08%. This performance not only exceeded Bitcoin’s historical average April return but also became the best month of the year.
The report emphasized that Bitcoin soared over 32% from its April low of $74,501, approaching $98,000, demonstrating its strong resilience amid macroeconomic turmoil and shifts in risk sentiment. Bitfinex stated:
If Bitcoin can hold the critical technical level of $95,000, which is the lower bound of the previous three-month range, and stabilize above the short-term holders’ cost basis of $93,340, it will lay a solid foundation for a return to historical highs.
On-Chain Data Supports Bullish Expectations
Regarding this assessment, Bitfinex explained that on-chain data indicates stable miner reserves, and the Puell Multiple metric suggests that miners have little incentive to sell in large quantities, reflecting their confidence in future price increases.
While the short-term trend depends on whether the breakthrough at $95,000 can be converted into solid support, structural signals remain bullish, creating conditions for the continuation of the current market cycle. Therefore, once the overall economic environment stabilizes, Bitcoin is expected to rise further.
Additionally, focusing on the U.S. economy, which has drawn significant market attention, Bitfinex pointed out that the U.S. economy displayed resilience in April, with job opportunities increasing, the unemployment rate stable at 4.2%, and labor participation rising. Industries such as education, healthcare, and hospitality continue to hire. However, wage growth slowed to 0.2% month-over-month and 3.8% year-over-year, job vacancies decreased, and job losses were observed in manufacturing and retail, indicating a cooling labor market. Bitfinex also noted that inflationary pressures from tariffs and stagnation in household income growth might pose a risk of economic slowdown in the U.S.
The Puell Multiple is an on-chain metric used to analyze the Bitcoin market, assessing miners’ income relative to historical averages to infer potential supply and demand dynamics and price trends. A high Puell Multiple indicates that miners’ current income is significantly above the past year’s average, which may suggest high Bitcoin prices, strong selling pressure from miners (selling Bitcoin to realize profits), and that the market may be nearing a peak or overheating. Conversely, a low Puell Multiple suggests that miners’ income is far below historical averages, indicating low selling pressure. This often occurs at market bottoms, potentially signaling a price rebound or buying opportunity. The middle range indicates that the market is in a relatively balanced state, with stable miner income and no significant overheating or sluggish signals.
Positive Developments in the Cryptocurrency Space
Additionally, the Bitfinex report highlighted several positive developments in the cryptocurrency space, including:
- Nexo’s return to the U.S. market after a two-year exit, planning to offer compliant cryptocurrency financial products, reflecting the industry’s trend of cooperation with regulators.
- The U.K. government has proposed a draft to regulate cryptocurrency platforms, emphasizing consumer protection and transparency while collaborating with the U.S. to establish a transatlantic regulatory framework.
- The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into PayPal’s stablecoin PYUSD without taking enforcement action, potentially providing clarity for stablecoin regulation.
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