- Crypto markets gained 9.9% in April, led by Bitcoin amid easing tariffs and improved sentiment.
- Bitcoin’s dominance hit 63%, driven by its “digital gold” narrative and rising institutional interest.
- Global liquidity growth and U.S. regulatory shifts boosted both Bitcoin and CeFi investments.
According to a report released by Binance Research on Tuesday, May 6, the cryptocurrency market rebounded in April with a 9.9% gain, mainly due to Bitcoin’s (BTC) performance and investors’ improving sentiment following a pause in tariffs.
According to the report, BTC managed to strengthen its dominance in the market as the overall market recovered. Now, BTC is holding 63% of the crypto market capitalization, the most since 2021. The dominance rise that is submitted here signifies the consistent increasing investors’ focus on Bitcoin as a long-term asset, which has been a trend since 2022.
This led to an increase in Bitcoin’s market share. According to Binance Research, the discussions surrounding the adoption of BTC as a strategic reserve asset and the description of Bitcoin as “digital gold” have contributed to this growth. These narratives have helped BTC become mainstream and imbue it with the aura of a trustworthy store of value amidst increasingly erratic economic environments.
On a historical note, dips in Bitcoin’s dominance have typically been accompanied by wider bull runs among altcoins, especially at the tail end of 2024. But the April data clearly suggests a market narrative shift in the making, where BTC is becoming an instrument of its own making with some ambitious and growing institutional interest.
Money Supply Expansion Correlates with Bitcoin’s Growth
The unprecedented rise in the global money supply is a major macroeconomic factor behind Bitcoin’s rally. This would result in an M2 measure of $93 trillion for the G4 economies (the United States, Japan, China, and European Union), almost triple the current world record, with a previous estimated value of $36 trillion for the US economy in 2001. BTC prices correlated positively with this expansion, deepening its position as a hedging tool against fiat currency debasement.
Bitcoin advocates argue that the digital asset safeguards against inflation, especially during aggressive monetary easing periods. Liquidity influx also benefits the crypto ecosystem because it enables capital to flow and increases the valuations of all assets.
CeFi Sees Capital Surge Amid Regulatory Shifts
The report also pointed out that, other than Bitcoin momentum, there was an increase in funding for centralized finance (CeFi) companies over the past two months. This reflects the trend of growing investor interest in regulated crypto platforms as a precaution in the wake of new developments in American regulations.
The U.S. is still a key hub of the global venture capital ecosystem, and regulatory clarity is making CeFi entities more interesting to institutional investors. In the words of Binance, this shift could signal a new evolution of the digital asset space’s landscape as traditional and legacy financial mechanisms transition to crypto infrastructure.
