• Bitcoin climbed more than 13% in April, putting it on track for its strongest monthly performance in about a year.
• VanEck said negative funding rates and recent hash rate drawdowns, both historically tied to price gains, are currently emerging as volatility declines.
• The firm noted Bitcoin has risen in six of the last seven similar hash rate events, typically over a 90-day period, positioning the asset for potential upside into May.

Bitcoin (BTC) has been showing signs of strength heading into May after rising more than 13% in April and holding above $77,000 on Saturday.

VanEck released its mid-April Bitcoin ChainCheck report on Friday, explaining that two historically bullish indicators, negative funding rates and clustered hash rate drawdowns, are currently emerging as market volatility declines. The firm noted that Bitcoin’s 7-day average funding rate has fallen by around 1.8%, its lowest level since 2023, indicating a shift in market positioning.

At the same time, the investment manager pointed to recent declines in Bitcoin’s hash rate, a measure of the network’s computing power, which have historically been followed by price gains. According to VanEck, Bitcoin has risen in six of the last seven instances of similar hash rate drawdowns, typically over a 90-day period.

The current setup comes as Bitcoin maintains upward momentum through April. The cryptocurrency is up more than 13% this month, with gains supported by steady spot demand and rising stablecoin liquidity, according to an analyst who goes by the name EllaWeb3, as the asset holds above key price levels heading into May.

Bitcoin’s price was up by 0.1% over the past 24 hours. On Stocktwits, the retail sentiment around Bitcoin moved to ‘neutral’ from ‘bullish’ while chatter around it remained at ‘normal’ levels over the past day. 

On the macro front, expectations for monetary policy remain a key factor. The Federal Reserve is widely expected to hold interest rates steady in the near term, CNBC reported on Friday, even as some analysts point to a potential “regime change” in policy direction. 

“Americans are dealing with trillions of dollars in credit cards, auto, and student loan debt. Higher interest rates are making that more difficult for them,” said Rohit Chopra, former director of the Consumer Financial Protection Bureau. 

Together, supportive on-chain signals and stabilizing macro conditions are placing Bitcoin in focus as markets head into May.

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