[Digital Today reporter Yoonseo Lee] Bitcoin recovered the $81,000 level after recouping most of its losses triggered by a U.S. inflation shock.

On May 14 local time, blockchain media outlet Cointelegraph reported that as U.S. stocks rewrote record highs, oil also retested the $100-a-barrel level.

On TradingView, BTC/USD stood at $80,000 around the time Wall Street opened. Bitcoin had fallen after the previous day's release of U.S. inflation data. The reading was assessed as among the highest levels in the past 4 years.

The stock market, by contrast, quickly absorbed the shock despite the possibility of tighter policy ahead. The S&P 500 extended gains on May 14 after setting a record closing high, and the Dow Jones Industrial Average recovered the 50,000 level for the first time since early February.

At the same time, U.S. stocks appeared to quickly digest concerns about tighter policy. The S&P 500 continued rising after setting a record closing high, and the Dow Jones Industrial Average rose above 50,000 points for the first time since early February. Oil also retested $100 a barrel for West Texas Intermediate crude.

Markets see the rebound as being driven by expanding appetite for risk assets. Market analysis firm The Kobeissi Letter assessed that investors' risk appetite is surging. It also cited that assets under management in U.S. leveraged exchange-traded funds hit a record $177 billion, up $45 billion since the March low.

Funding conditions were also cited as a signal favorable to risk assets. The Kobeissi Letter viewed rising global money supply as a supportive trend for cryptocurrencies and risk assets. U.S. M2 money supply was tallied at $22.7 trillion, up $1 trillion from a year earlier. That implies a liquidity signal moving in a different direction from concerns about a hawkish stance by central banks.

In the short-term price move, technical support levels emerged as a key variable. Trader Daan Crypto Trades called the current zone a "pivotal level". In his chart, the 200-day simple moving average and the exponential moving average are sloping upward toward the spot price. He judged that if prices hold above this zone, attempts at a rebound could continue.

Another trader, CryptNuevo, offered a similar view. He said BTC/USD could head to a new multi-month high if support at the 50-week exponential moving average holds. CryptNuevo said the previous day that "Bitcoin is at the most important level."

With these moves, the market's next focus is whether Bitcoin can secure further upside momentum while holding key support levels. While U.S. stocks continue to set record highs and liquidity indicators are expanding, inflation and monetary policy variables remain. Market attention is on whether Bitcoin will use its recovery of the $80,000 level as a springboard to try to break above $85,000.

$BTC Hanging on to that ~$79.4K level which marked the previous highs in April. Pivotal level here in the short term. The 4H 200MA/EMA are coming in below and will be catching up to price quickly too. pic.twitter.com/xc6q5023BX