$1.8 Billion Swept Up in a Month! The Frightening Momentum of Bitcoin Driven by Institutions!

▲ Bitcoin (BTC) ©CoinReaders

Bitcoin (BTC), backed by massive institutional capital inflow, is on the verge of reclaiming the $80,000 mark, but a sense of tension hangs over the market that a huge wave of profit-taking sell-offs from investors who have reached their breakeven point could flood in.

According to investment specialized media FXStreet on April 24 (local time), Bitcoin's recent recovery to the $76,000 level is attributed to strong institutional demand and improved market structure. In particular, US spot Bitcoin Exchange-Traded Funds (ETFs) saw a net inflow of $1.12 billion over five trading days until April 21, with total inflows over the past month reaching $1.87 billion. Gabe Selby, Head of Research at CF Benchmarks, diagnosed that these large-scale capital flows are not speculative capital from short-term retail investors or hedge funds, but rather funds from large institutional investors such as asset managers and major asset channels.

Furthermore, giant company MicroStrategy additionally accumulated 34,164 Bitcoins last week, investing approximately $2.54 billion, providing a solid support base for the bull market. The synchronization phenomenon between the leading cryptocurrency and the stock market is also becoming clear again. The 90-day rolling correlation with the Nasdaq 100 index rose from 0.49 in early October to 0.58 as of April 21, suggesting that the recent strength in the New York stock market is supporting the rally in the crypto market.

However, despite strengthening upward momentum, on-chain data warns that the $80,000 range will be the toughest test. According to CryptoQuant data, the realized price for fund investors is around $76,400, close to the current spot price of $78,000. This marks the first time this group has reached its breakeven point since entering a loss-making phase at the end of January.

The realized price for short-term holding whales is also formed slightly higher than the current price, around $79,600. These investors have endured a period of unrealized losses totaling $4.3 billion since November. MorenoDivi, an analyst at CryptoQuant, warned that the concentration of these two key investor groups' cost bases around the current price is a very sensitive situation, and the typical pattern observed in behavioral on-chain analysis, where massive profit-taking pressure emerges when capital trapped in losses finally recovers its breakeven point, could repeat.

Experts unanimously agree that if the leading cryptocurrency stably breaks through $80,000, that resistance level will transform into a new strong support level. If Bitcoin, currently trading around the $78,300 mark, fails to cross the $80,000 threshold, it is expected to undergo a long and tedious period of market consolidation throughout the second quarter to absorb investors' selling pressure.

*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.*