S&P 500 Scales New Heights as Bitcoin Posts Strongest Monthly Gain in a Year

The S&P 500 and Bitcoin both demonstrated strong momentum in April, with the benchmark index hitting fresh all-time highs while the leading cryptocurrency secured its best monthly performance in a year. The S&P 500 nearly touched 7,220 points, bolstered by robust earnings reports from technology giants Apple and Google. Market data indicates the index has added more than $8 trillion in market capitalization since the local lows observed in late March. This rally occurred despite warning signs from the US Bureau of Economic Analysis. The Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation metric, rose to 3.5% in March—the highest level since August 2023. Analysts noted that risk assets largely ignored these inflation spikes, which coincided with the first month of the Iran War. Bitcoin closed April above $76,000, recording a monthly gain of approximately 11.9%. Despite this strength, technical analysts warn of a potential rejection at the 21-week exponential moving average (EMA). Some traders suggest a retest of the mid-$60,000 range may be technically necessary to confirm a full breakout. The divergence between rising inflation data and record-breaking asset prices suggests a high appetite for risk among investors, though technical hurdles remain for Bitcoin's continued ascent toward $77,500.