Bitcoin Breaks $77,000...Spot Fund Net Inflow Continues for 5 Consecutive Days

▲ Bitcoin (BTC) Exchange-Traded Fund (ETF) ©CoinReaders

A massive short squeeze (buying pressure generated to liquidate or cover short positions), fueled by favorable macroeconomic conditions and fierce buying from institutional investors, has exploded, pushing the leading cryptocurrency past $77,000 in one go and heating up the market.

According to CoinMarketCap, a cryptocurrency market aggregator, on April 22 (local time), Bitcoin (BTC) recorded a 2.47% increase over the past 24 hours, reaching $77,592.13. This figure surpasses the average increase of 2.01% across the entire virtual asset market and shows a high correlation of 81% with the US S&P 500 index, indicating a movement thoroughly synchronized with macroeconomic trends.

The most powerful driving force behind this rally is the continuous inflow of funds into spot exchange-traded funds. As of April 20, an additional $238.37 million flowed in, continuing a five-day streak of net purchases. This consistent buying pressure from institutional capital directly absorbs the available supply in the market, acting as a strong support base that drives price increases.

Easing geopolitical tensions and a cascade of liquidations in the derivatives market also contributed to maximizing the gains. News of a ceasefire negotiation between Iran and Pakistan significantly improved overall investor sentiment towards risk assets. Furthermore, a 6.77% increase in open interest and the forced liquidation of $50.47 million worth of short positions ignited bullish momentum through a derivatives market-led short squeeze (buying pressure generated to liquidate or cover short positions).

The short-term market direction hinges on whether Bitcoin can definitively break through the key resistance level it recently formed at $78,320. A successful breakthrough of this zone could lead to a rally up to $81,951, corresponding to the 127.2% Fibonacci extension. Conversely, if the upward momentum weakens and the critical support level at $75,170 (the 23.6% retracement line) breaks, there is a risk of a retreat to $73,220.

Ultimately, the current bull market is an inevitable outcome of the combination of insatiable demand for exchange-traded funds and a favorable macroeconomic environment. With institutional buying continuously supplying upward fuel, whether the short-term resistance level is breached will be a critical watershed determining entry into a sustained bull market in the future.

*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.*