Bitcoin ETF Sees Largest Inflow in 4 Months... Will It Confirm $90,000 in the Second Half?

▲ Bitcoin (BTC)

The virtual asset market is continuing a strong upward rally, breaking the $80,000 mark, driven by record institutional capital inflows into Bitcoin (BTC) spot ETFs and the easing of geopolitical risks.

According to the cryptocurrency media outlet BeInCrypto on May 5 (local time), the total cryptocurrency market capitalization increased by $17.14 billion from Sunday's close, reaching $2.63 trillion, a 0.66% rise. It has shown a steady recovery since hitting a low of $2.48 trillion on April 29, with $2.64 trillion currently acting as a short-term resistance level.

Notably, on May 1 alone, US Bitcoin spot ETFs absorbed $573.28 million, the largest amount since January, setting a new multi-month record.

Institutional capital has rotated back into the cryptocurrency market as Donald Trump's Project Freedom, a plan to escort ships through the Strait of Hormuz announced on May 4, eased oil supply pressures. Bitcoin is currently trading at $80,405, maintaining a stable trend within a parallel ascending channel that has driven its price since late March. The Chaikin Money Flow (CMF) indicator, which reflects institutional buying pressure, registered 0.11, showing an upward trend and indicating that this rebound is not merely a temporary phenomenon driven by news but is supported by a solid institutional foundation.

If Bitcoin breaks above $82,139, it is expected to rise through $83,846 and $86,277, potentially reaching the extended upper trendline of the channel at $89,372. Currently, $80,432 acts as an immediate resistance level, while downside support is established at $78,320 and $74,906. If the total market capitalization forms a daily close above $2.64 trillion, further upside towards $2.73 trillion is possible, but a break below $2.58 trillion could intensify downward pressure towards $2.48 trillion.

Toncoin (TON) surged approximately 30% in 24 hours to $1.744 after Telegram founder Pavel Durov announced a six-fold reduction in transaction fees and Telegram joining as the largest validator. The fee reduction is expected to create an environment where Telegram's 950 million users can utilize micro-payments on the blockchain without the burden of fees. If Toncoin surpasses the $1.79 resistance level, it could continue its rally to $1.94, but failure to break through this zone could lead to a price correction down to the $1.52 level.

The virtual asset market is solidifying its bullish trend amid a favorable environment of massive institutional capital inflows and easing geopolitical risks. As Bitcoin cruises towards the upper end of its parallel channel, news of ecosystem expansion for individual assets like Toncoin acts as a catalyst, injecting vitality into the entire market. Investors should monitor whether key resistance levels are established and observe on-chain indicators reflecting institutional capital flows to formulate strategies in anticipation of volatility.

*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.*