Key points:

Bitcoin rebounded to $80,000 while US stock markets hit new records, ignoring high inflation.
Risk appetite is "skyrocketing," analysis says, despite worries over central-bank policy tightening.
Bitcoin can still head to $85,000 next, traders agree.
Bitcoin recoups losses as US stocks ignore inflation

Data from TradingView showed
BTCUSD
recovering much of the previous day’s losses, which followed some of the highest US inflation data in four years.

BTCUSD
one-hour chart. Source: Cointelegraph/TradingView

US stocks quickly shook off the numbers, despite the implications for future financial policy tightening.

The S&P 500 posted its highest daily close on record, and continued to surge on Thursday. The Dow Jones Industrial Average revisited 50,000 points for the first time since early February.

S&P 500 versus Dow Jones one-day chart. Source: Cointelegraph/TradingView

Commenting, trading resource The Kobeissi Letter reported “skyrocketing” risk appetite among investors.

“Assets under management (AUM) in US leveraged ETFs are up to a record $177 billion. Since the March bottom, total leveraged ETF AUM has surged +$45 billion,” it wrote in its latest analysis on X.

Leveraged ETF AUM data. Source: The Kobeissi Letter/X

Kobeissi used the same term to describe global money-supply growth — a crypto and risk-asset tailwind at odds with concerns that central banks were adopting a “hawkish stance.”

“Meanwhile, US M2 money supply jumped +$1 trillion YoY, or +4.6%, to a record $22.7 trillion,” it continued.

“Money supply growth is accelerating.”

Global money supply data. Source: The Kobeissi Letter/X

As the US-Iran war rumbled on, oil prices seemed unable to crack new highs, with WTI crude retesting the $100 per barrel mark from above.

CFDs on WTI crude oil one-day chart. Source: Cointelegraph/TradingView

"Most important" BTC price support still in play

Looking at BTC price action, trader Daan Crypto Trades saw the market at a “pivotal level.”https://cointelegraph.com/markets/bitcoin-price-repeats-move-with-77-all-time-high-odds-within-a-year

“Hanging on to that ~$79.4K level which marked the previous highs in April,” he told X followers.

An accompanying chart showed the 200-period simple (SMA) and exponential (EMA) moving averages trending higher toward the spot price.

BTCUSDT
perpetual contract four-hour chart. Source: Daan Crypto Trades/X

On the same topic, fellow trader CrypNuevo saw the potential for
BTCUSD
to head to new multi-month highs at the 50-week EMA should that support hold.

“Bitcoin is at the most important level,” he agreed on Wednesday.

“If it holds the range highs here, then it'll push towards the 1W50EMA at $84k-$85k. But a failure to hold this level could trigger a rotation back to the mid-range, potentially exposing range lows if momentum doesn't shift.”

BTCUSDT
one-day chart. Source: CrypNuevo/X
source: https://www.tradingview.com/news/cointelegraph:b855d4795094b:0-bitcoin-holds-key-support-for-85k-breakout-as-s-p-500-hits-new-all-time-high/