Bitcoin Hits the $80,000 Wall, Why Can't It Rise Despite Institutional Capital Inflow?

▲ Bitcoin Plunge ©

As Bitcoin failed to break the $80,000 resistance and declined, major virtual assets, including XRP (Ripple), also showed weakness, indicating that the market has reached a critical turning point.

According to TradingNews, an investment media outlet, on April 27 (local time), Bitcoin surged to around $79,500 during Asian trading hours but retreated to the $77,700 level due to selling pressure. This marks the second failure to break the psychological barrier of $80,000 this week, and Bitcoin is currently in a tight tug-of-war between the support level of $73,500 and the resistance level of $80,000.

Despite the price correction, institutional investors' buying momentum has been explosive. According to SoSoValue data, US Bitcoin spot ETFs saw a net inflow of $823.7 million last week, attracting large sums of capital for four consecutive weeks. However, rising geopolitical tensions in the Strait of Hormuz related to Iran and increasing macroeconomic uncertainty, such as President Trump canceling the dispatch of a peace negotiation envoy, have prevented the massive inflow of institutional funds from leading to an immediate price breakout.

While Bitcoin underwent correction, altcoins, including XRP, experienced larger declines, clearly reflecting a risk-off sentiment. Top market cap assets like Ethereum (ETH) and Cardano (ADA) all showed weakness, and XRP, trading near its short-term support of $1.41, also faced selling pressure. The media outlet advises a conservative approach, focusing on blue-chip assets with relatively strong defensive capabilities rather than volatile altcoins until macroeconomic uncertainties are resolved.

Experts' opinions on the long-term price outlook are sharply divided. Veteran trader Peter Brandt predicted that Bitcoin could reach $300,000 to $500,000 by 2029, assuming the four-year halving cycle holds. In contrast, Canary Capital presented a pessimistic scenario, suggesting a potential drop to $50,400 if the current cycle turns into a bear market, cautioning investors against blind optimism.

The short-term direction of the market is expected to be heavily influenced by the earnings reports of major tech companies scheduled for this week. If tech giants deliver positive results related to artificial intelligence, risk appetite could spread across the broader market, acting as a catalyst for Bitcoin to firmly break the $80,000 resistance. Conversely, if earnings disappoint, there is a risk of further correction after testing the $73,500 support level, thus requiring cautious action.

*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.*