Bitcoin, with 6 Consecutive Weeks of Capital Inflow, Will It Break Through $88,000, Buoyed by the CLARITY Act?

▲ BlackRock Bitcoin/ChatGPT generated image ©

Bitcoin (BTC) has set a remarkable record of 6 consecutive weeks of capital inflow, demonstrating robust institutional demand, while BlackRock's IBIT has dominated the market, monopolizing $1.7 billion in a single month, emerging as an absolute powerhouse.

According to investment media TradingNews on May 11 (local time), Bitcoin (BTC) is currently trading around the $81,000 mark and is preparing for a price surge based on strong institutional buying. In the past week alone, $857.9 million in new funds flowed into the virtual asset ETF market, and the cumulative inflow for the year has surpassed $4.9 billion. Notably, BlackRock's 'iShares Bitcoin Trust (IBIT)' alone swept up $1.7 billion in April, accounting for 70% of the total inflows into US spot Bitcoin ETFs, achieving a market capitalization of $175.86 billion and establishing itself as a key investment vehicle in the global capital market.

The strong performance of latecomers is also remarkable. Morgan Stanley's Bitcoin ETF (MSBT), launched on April 8, set a rare record of no capital outflow on any single day since its listing, with its asset size exceeding $239 million. MSBT is rapidly attracting long-term institutional funds with an industry-low management fee of 0.14%. Conversely, inverse products betting on a decline saw their largest outflow this year, $14.4 million, indicating that market sentiment has decisively shifted towards bullishness.

Institutional changes are also aiding Bitcoin's ascent. The US Senate Banking Committee's confirmation of the review process for the US cryptocurrency market structure bill, the CLARITY Act, on the 14th, has heightened expectations for resolving regulatory uncertainty. This bill is expected to clearly classify virtual assets as digital commodities under federal law, providing a foundation for institutions to invest with confidence. Prediction market Polymarket estimates a 62% chance of the bill passing this year, which is expected to be a powerful catalyst for Bitcoin to break through the $82,300 resistance level and head towards the $88,000 high.

Technically, the 200-day Simple Moving Average (SMA) at $82,595 is acting as a short-term ceiling. While it has faced resistance in this range multiple times over the past two weeks, support around the $79,250 level has been confirmed, accumulating energy for an upward breakout. Experts predict that if Bitcoin surpasses $83,000 on a closing basis, it will continue a strong rally towards the long-term resistance zone between $86,000 and $88,000. Particularly, the recent expansion of mining companies into AI data center infrastructure, diversifying their revenue streams, also contributes to the downside rigidity of Bitcoin's price.

However, the Consumer Price Index (CPI) to be announced on the 12th and geopolitical risks are variables. If inflation pressures due to surging oil prices turn out to be higher than expected, investor sentiment could temporarily contract. But the immense trend of continuous accumulation by large asset managers and regulatory refinement is elevating Bitcoin to the status of 'digital gold,' making temporary corrections more likely to serve as additional buying opportunities for institutions. Experts analyze that the results of this week's scheduled CLARITY Act review will be a decisive turning point in ushering in the era of Bitcoin at $100,000.

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