Bitcoin holds $80K support as S&P 500 hits record high

Bitcoin touched $80,000 on Thursday morning, coinciding with the S&P 500’s highest daily close on record, and traders now watch the $79.4K‑$80K zone as the decisive support that could unlock a move toward $85,000【1】.

Market backdrop and technical set‑up

U.S. equities surged despite the latest four‑year‑high inflation reading, with the S&P 500 posting its highest close ever and the Dow briefly revisiting the 50,000‑point mark【1】. The rally was mirrored in crypto, where Bitcoin recovered most of the previous day’s drop and settled around $80,000, a level that previously acted as support in April【3】.

Technical charts show the 200‑period simple and exponential moving averages converging near the spot price, while the 50‑week EMA sits around $84,000‑$85,000. Traders Daan Crypto Trades and CrypNuevo both flag the $79.4K‑$80K region as “the most important level,” suggesting that a clean hold could propel BTC toward the 50‑week EMA and the $85,000 breakout target【1】【3】.

Macro drivers behind the risk‑on bias

The Kobeissi Letter highlighted that assets under management in U.S. leveraged ETFs have risen to a record $177 billion, up $45 billion since the March bottom, reflecting “skyrocketing” risk appetite【1】. At the same time, the U.S. M2 money supply expanded by $1 trillion year‑over‑year to $22.7 trillion, a 4.6 % increase, providing ample liquidity that many analysts view as supportive for risk assets like Bitcoin【1】.

Geopolitical tension over the US‑Iran conflict kept oil prices near $100 per barrel but failed to spark a broader risk‑off move, reinforcing the view that monetary expansion, rather than headline risk, is the dominant driver of the current price action【1】.

What to watch

• $85,000 resistance – a break above this level would confirm the technical breakout scenario outlined by CrypNuevo.
• Leveraged ETF flows – any sharp reversal in the $177 billion AUM figure could pressure risk assets and test Bitcoin’s support.
• U.S. monetary data – a significant shift in M2 growth or a hawkish Fed signal could alter the liquidity backdrop supporting the rally.

Bitcoin’s ability to hold the $79.4K‑$80K floor will determine whether the cryptocurrency rides the equity‑driven risk surge into a new high or succumbs to a broader correction. The interplay between record equity gains, expanding money supply, and concentrated leveraged‑ETF exposure makes the next few weeks pivotal for the market’s direction.