Institutions are buying, but the price is stuck…Bitcoin's $80,000 Battle

▲ BlackRock Bitcoin/ChatGPT generated image ©

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

According to investment media TradingNews on April 27 (local time), Bitcoin (BTC) spot ETFs recorded a net inflow of $823.7 million in 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 all Bitcoin spot ETFs swelled to $102.64 billion.

Funds were concentrated in BlackRock's iShares Bitcoin Trust (IBIT). IBIT attracted $733 million out of the weekly inflow of $823.7 million, accounting for an overwhelming proportion. IBIT's price closed at $43.56 and rebounded slightly 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. This is seen as a favorable signal for mid-to-long-term supply and demand, as institutional funds are consistently absorbing Bitcoin through ETFs.

Corporate holding demand also continued. Strategy recently additionally purchased 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 cost 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. Amid an increase in futures market open interest from $24.88 billion to $28 billion, the media pointed out that this rally is more derivatives-driven than spot-buying-driven. This implies that a short-term correction could be significant if leveraged positions are unwound.

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

*Disclaimer: This article is for investment reference purposes, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*