Bitcoin ETF Sees Largest Inflow in 4 Months... Will It Secure $90,000 in the Second Half of the Year?

▲ Bitcoin (BTC)

The virtual asset market is continuing a strong upward rally, breaking through the $80,000 mark, driven by record institutional capital inflows into Bitcoin (BTC) spot ETFs and the easing of geopolitical risks.

According to crypto-focused media outlet BeInCrypto on May 5 (local time), the total cryptocurrency market capitalization rose by 0.66% to $2.63 trillion, an increase of $17.14 billion from Sunday's closing price. It has shown a steady recovery since hitting a low of $2.48 trillion on April 29, with $2.64 trillion currently acting as a short-term resistance level.

Notably, on May 1 alone, US Bitcoin spot ETFs absorbed $573.28 million, the largest amount since January, breaking a multi-month record.

Institutional capital has rotated back into the cryptocurrency market as Donald Trump's Project Freedom, a plan to escort ships through the Strait of Hormuz announced on May 4, eased oil supply pressures. Bitcoin is currently trading at $80,405, maintaining a stable trend within the parallel ascending channel that has driven its price since late March. The Chaikin Money Flow (CMF) indicator, which reflects institutional buying pressure, registered 0.11, showing an upward trend, indicating that this rebound is not a temporary phenomenon driven by news but is supported by a solid institutional base.

If Bitcoin breaks through $82,139, it is expected to continue its upward trajectory to $83,846, then $86,277, and potentially reach the extended upper channel line of $89,372. Currently, $80,432 acts as immediate resistance, while downside support is established at $78,320 and $74,906. If the total market capitalization forms a daily close above $2.64 trillion, further upside towards $2.73 trillion is possible, but if $2.58 trillion breaks down, downward pressure could intensify towards $2.48 trillion.

Toncoin (TON) surged approximately 30% in 24 hours to $1.744 after Telegram founder Pavel Durov announced a six-fold reduction in transaction fees and Telegram's largest validator joining the network. The fee reduction is expected to create an environment where Telegram's 950 million users can utilize micro-payments on the blockchain without incurring significant fees. If Toncoin surpasses the $1.79 resistance, it could continue its rally to $1.94, but failure to break this level could lead to a price correction towards $1.52.

The virtual asset market is solidifying its bullish trend amidst a favorable environment of large-scale institutional capital inflow and easing geopolitical risks. As Bitcoin cruises towards the upper end of its parallel channel, news of ecosystem expansion for individual assets like Toncoin injects vitality into the overall market. Investors should monitor on-chain indicators reflecting institutional capital flows, along with the stability above key resistance levels, to formulate strategies for market volatility.

*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.*