Why the cryptocurrency market rose today... Bitcoin and institutional demand led the way

▲ Bitcoin, Cryptocurrency ©

Bitcoin's recovery to $80,000, coupled with institutional buying, is once again driving up the entire cryptocurrency market.

According to CoinMarketCap, a cryptocurrency market data aggregator, on May 4 (local time), the total cryptocurrency market capitalization rose by 1.05% over 24 hours to record $2.65 trillion. This rally showed a low correlation of -31% with the S&P 500 index and -24% with gold, indicating it was driven by internal cryptocurrency dynamics rather than traditional assets.

At the center of the surge is Bitcoin (BTC). Bitcoin's recovery to $80,000 fueled expectations of a technical breakthrough, and the amount of Bitcoin purchased by companies in Q1 2026 reached an all-time high of 50,351 BTC. Assets under management for Bitcoin spot ETFs also expanded to $104.57 billion, highlighting institutional demand as a key factor supporting the market's bottom.

Expectations on the regulatory front also stimulated investor sentiment. The joint classification of 16 major assets as Digital Commodities by the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) eased regulatory burdens and increased preference for risk assets. Furthermore, Terra Classic (LUNC) surged by 20.61% on expectations of aggressive token burning, and Dash (DASH) jumped by 23.57% amid a technical breakout, indicating a rotation of speculative funds into some altcoins.

The short-term outlook is cautiously bullish. If Bitcoin holds above $80,000, the uptrend could extend to the $84,000 to $85,000 resistance zone. Conversely, if it falls below $77,000, the entire market is likely to retest the 23.6% Fibonacci support level at around $2.58 trillion.

Ultimately, the key to this rebound is Bitcoin's stabilization at $80,000 and the capital flow into U.S. Bitcoin spot ETFs. If institution-led buying continues, the uptrend could be extended, but the weekly closing price and ETF inflow data to be released early this week are expected to be barometers for the market's next direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*