Bitcoin Surges 80% to $94,281.57 on $3 Billion ETF Inflows

Bitcoin's price has surged to $94,281.57, nearing the critical $95,000 resistance level. This surge comes after a significant inflow of institutional capital into Bitcoin spot exchange-traded funds (ETFs), with over $3 billion in inflows for the week ending April 25. This marks the second-highest weekly inflow since the launch of these ETFs and the first full week of consecutive inflows in five weeks, indicating renewed confidence among investors.

The strong institutional demand is evident in the addition of 35,500 BTC to custody by spot Bitcoin ETFs during the week ending April 25. BlackRock’s iShares Bitcoin Trust (IBIT) led this surge with $1.4 billion in inflows, contributing heavily to the overall $3.06 billion. This trend reflects the increasing interest of institutional players in the cryptocurrency space, driving Bitcoin’s recent price rally. Since March 2, Bitcoin has reached a new high of $94,700, the highest sum since then, reached on April 23.

With institutional demand continuing to increase buying pressure, the available supply has been absorbed, exerting upward pressure on the price. However, Bitcoin still faces the $95,000 level as a psychological resistance barrier. Historical data suggests that breaking above this level could trigger a rally towards $100,000, a figure that has been in the sights since Bitcoin last hit its all-time high of $108,000 in December 2024. If this resistance is not breached, there may be a pullback with support levels at $90,000 and the 200-day Simple Moving Average sitting at $88,690.

Technical indicators support the bullish sentiment, with Bitcoin’s current price of $94,281.57 above key technical levels. The cryptocurrency is above its 200-day simple moving average, a level that has historically provided good support during uptrends. The last time Bitcoin broke above this moving average was in October 2024, leading to an 80 percent rally to the previous peak. Bids on Binance’s order book are tight, with interest in trading high. The reduction in Bitcoin exchange inflows from a year-to-date high of 97,940 BTC on February 25 to 45,000 BTC on April 23 implies less selling pressure, as fewer coins are being moved to exchanges for potential sales. This trend coincides with an increasing “HODL” sentiment among investors.

The market’s reaction to macroeconomic factors has also influenced Bitcoin’s price. Inflows into Bitcoin ETFs have been driven by ‘inflation concerns,’ with CPI prints beating expectations in February and March. This has increased the appeal of Bitcoin to institutional investors as a hedge against inflation. The value of Bitcoin on the market is currently estimated to be 1.87 trillion dollars, making it the fifth-largest asset in the world.