April crypto market recovery driven by Bitcoin’s surge, bolstered by a pause in tariff implementations and growing investor interest - IcoHolder.

The cryptocurrency market saw a notable recovery in April, gaining 9.9% overall, largely driven by a surge in Bitcoin’s performance. According to a report released on May 6 by Binance Research, the boost in market sentiment was largely fueled by a pause in tariff implementations, which helped revive investor confidence.

Bitcoin, which has been steadily increasing its dominance since 2022, continued to strengthen its position, currently commanding 63% of the total crypto market cap. This marks its highest dominance since 2021. The growing narrative around Bitcoin as a strategic reserve and its appeal as digital gold have contributed significantly to its rise in investor interest.

In recent years, Bitcoin’s dominance has tended to drop during broader market bull runs, such as late 2024. However, the increase in April suggests a shift in how investors view Bitcoin, with the asset increasingly recognized as a mainstream financial instrument.

Another trend highlighted by the report is the expansion of the money supply, particularly in the G4 countries, which include the U.S., Japan, China, and Europe. The M2 money supply is expected to increase by a record $93 trillion, a move that has shown a positive correlation with Bitcoin’s price. Proponents of Bitcoin argue that the cryptocurrency serves as a hedge against inflation, positioning it as a valuable asset amid growing liquidity in traditional markets.

Additionally, the report noted a rising trend in centralized finance (CeFi) companies, which have attracted increasing investor interest in recent months. This shift can be attributed to evolving regulatory frameworks in the U.S., a key player in global venture capital, which have made CeFi platforms more appealing to investors.

The overall performance of the crypto market, coupled with Bitcoin's strengthening dominance, indicates that the digital asset space may be on the verge of further institutional integration. As Bitcoin continues to evolve, its role as both a digital store of value and a mainstream financial asset looks set to grow.