Institutions are buying, but the price is stalled... Bitcoin $80,000 War

▲ BlackRock Bitcoin/ChatGPT generated image ©

While institutional demand has revived with funds flowing into Bitcoin spot ETFs for four consecutive weeks, Bitcoin itself has been blocked at the $80,000 threshold for the third time.

According to investment media TradingNews on April 27 (local time), Bitcoin (BTC) spot ETFs recorded a net inflow of $823.7 million during the week ending April 24. This marks a positive trend for four consecutive weeks. Cumulative inflows in April exceeded $2.4 billion, and the total assets under management for Bitcoin spot ETFs swelled to $102.64 billion.

Funds were concentrated in BlackRock's iShares Bitcoin Trust (IBIT). IBIT accounted for an overwhelming portion, attracting $733 million out of the weekly inflow of $823.7 million. IBIT's price closed at $43.56, and saw a slight rebound to $43.65 in after-hours trading.

All Bitcoin spot ETFs currently hold 1,322,094 BTC, which accounts for approximately 6.3% of the circulating supply. The consistent absorption of Bitcoin by institutional funds through ETFs is read as a favorable signal for mid-to-long-term supply and demand.

Corporate holding demand also continued. Strategy recently purchased an additional 3,273 BTC for $255 million. The average purchase price was $77,906, and the total holdings increased to 818,334 BTC. The total acquisition amount is approximately $61.81 billion, with an average unit price of $75,537.

However, the price has not yet overcome resistance. Bitcoin has failed to break through the $79,500 to $80,000 range three times in April. With futures market open interest increasing from $24.88 billion to $28 billion, the media pointed out that this rally is more driven by derivatives than spot purchases. This implies that a larger short-term correction could occur if leveraged positions are unwound.

TradingNews suggested a bearish buy zone for IBIT between $42 and $43, and a 12-month target range of $52 to $62. However, with the U.S. Federal Open Market Committee (FOMC) meeting, earnings reports from major tech companies, and U.S.-Iran negotiation uncertainties coinciding this week, whether Bitcoin can surpass $80,000 with significant trading volume is considered a key variable for its short-term direction.

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