Bitcoin: Will it reach $90,000 as $1.1 billion in ETF funds pour in?

▲ BlackRock Bitcoin/ChatGPT Generated Image ©

The recovery of Bitcoin (BTC) to $81,000 was not a simple rebound, but rather a massive re-entry of institutional funds, led by BlackRock's iShares Bitcoin Trust ETF (IBIT).

According to investment specialized media TradingNews on May 5 (local time), US spot Bitcoin ETFs saw a net inflow of $532.2 million on May 4 alone. This marks three consecutive trading days of net inflows, with the cumulative inflow over the past three trading days reaching $1.18 billion. Amidst this trend, Bitcoin rose to $81,668, gaining 1.92% in a day, and recovered the $81,000 level for the first time since late January.

BlackRock was at the center of the fund inflows. IBIT attracted $335.5 million, accounting for approximately 63% of Monday's total net inflow, while Fidelity Wise Origin Bitcoin Fund (FBTC) added $184.6 million. With these two products making up about 98% of the total inflow for the day, a clear trend emerged of institutional investors concentrating funds into leading, highly liquid ETFs. IBIT traded at $46.28, rising 1.94% in a day, but it is still about 35% below its 52-week high of $71.82.

The reversal in ETF supply and demand began in earnest in April. In April, US spot Bitcoin ETFs recorded a net inflow of $2.44 billion, marking the largest monthly inflow since October 2025. Since their launch in January 2024, the cumulative net inflow for 13 spot Bitcoin ETFs has reached $59.3 billion, with total net assets amounting to $106.4 billion. This accounts for 6.7% of Bitcoin's total market capitalization.

Short squeezes (buying pressure that occurs to liquidate or cover short-selling positions) also influenced the price increase. During Bitcoin's rebound, short positions worth approximately $270 million were liquidated, expanding the upward movement. Technically, Bitcoin confirmed a breakout structure by surpassing the $79,498 level for two consecutive days, and the next resistances are presented as the 200-day simple moving average at $83,435 and the range of $83,871 to $84,445. If this range is exceeded, $88,000 to $90,000 is cited as the next target.

Market sentiment also recovered quickly. The Crypto Fear & Greed Index rose from extreme fear at 13 a month ago to the neutral zone at 45. The media reported that $61.29 million also flowed into Ethereum (ETH) spot ETFs on Monday, and $7.5 million and $1 million, respectively, entered XRP (Ripple)-related funds and Solana (SOL) funds, indicating that fund inflows were not limited to Bitcoin.

However, variables remain. Geopolitical risks in the Middle East, oil price fluctuations, the US cryptocurrency market structure bill, the CLARITY Act processing schedule, and expectations for a change in the US Federal Reserve chair were all cited as factors that could sway the short-term direction. The media analyzed that an upward structure for Bitcoin would be maintained as long as it holds $78,068, but if it breaks below, the likelihood of a correction to $76,008 and $73,711 increases. Conversely, if ETF inflows continue and it breaks above $83,435, there is a possibility of retesting $90,000 and, in the medium term, $100,000.

*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.*