Bitcoin price surged 11% from April 20 to April 26, nearing $94,000. A record $3.1 billion flowed into Bitcoin ETFs recently, indicating strong institutional interest. Bitcoin’s correlation with the S&P 500 has dropped to 29%, suggesting indepence from traditional markets. While retail traders show caution, institutional optimism is visible in futures premiums. Central banks remain hesitant on Bitcoin as a reserve asset, despite market growth and other cryptocurrencies also gaining traction.
Bitcoin (BTC) has seen a surge in its price recently, rising 11% from April 20 to April 26, nearly hitting $94,000. This momentum places Bitcoin near a two-month high, and many analysts are now looking at the psychological $100,000 as the next big hurdle. Factors contributing to this spike include optimistic signals from the Trump administration regarding import tariffs and solid corporate earnings that have bolstered market sentiment.
A significant reason behind Bitcoin’s recent rally is the massive influx of funds into spot Bitcoin exchange-traded funds (ETFs). These ETFs have experienced an unprecedented total of $3.1 billion in net inflows over five days, as stated by sosovalue, marking a level not seen since November. The high investment levels reflect a growing institutional desire for Bitcoin as a credible asset class, despite ongoing debates surrounding its investment role.
Interestingly, Bitcoin has been showing a decreasing correlation with traditional stock markets. The correlation between Bitcoin and the S&P 500 dropped to 29% over the last 30 days, a significant decline from 60% seen earlier in April. While it doesn’t indicate a full decoupling, this trend suggests that Bitcoin might be trading based more on its individual merits rather than just following stocks. This comes even as gold peaked at an all-time high of $3,500 on April 22, though it struggled to maintain strength thereafter.
The divergence in market sentiments is also evident when considering the behaviours of various traders. Retail traders seem more cautious, reflected in the negative funding rates for perpetual Bitcoin futures contracts as of April 26—a rarity in bull markets. This bearish sentiment has led to liquidations of over $450 million in BTC short positions initiated since April 21, even as Bitcoin’s price climbs.
In contrast, professional traders are displaying optimism. The two-month Bitcoin futures premium hit its highest in seven weeks, signalling more bullish interest from institutional players. Standing at 6.5%, this futures premium sits in a neutral range, moving away from bearish sentiments. This difference between retail caution and institutional bullishness could play a significant role in Bitcoin’s hopeful journey towards $100,000.
Yet, even with positive market shifts, skepticism from central banks lingers. The Swiss National Bank’s President, Martin Schlegel, recently dismissed the idea of the central bank holding Bitcoin, highlighting concerns about its volatility during market crises. His comments reflect a broader reluctance among many central banks to consider cryptocurrencies as viable reserve assets.
The overall cryptocurrency market has generally mirrored Bitcoin’s upward trajectory. Other major cryptocurrencies also experienced gains, with Ether (ETH) nearing $1,796.60 and XRP up by 4.6% to $2.2733. Additionally, Solana and Cardano increased by over 2% each, boosted by rising activity around Trump-linked memecoins.
Currently, Bitcoin’s price remains relatively stable at around $94,051, on the heels of its recent highs. Consolidation appears to be happening in trading volumes, suggesting that a further upward movement might be imminent. With the continued flow of capital into Bitcoin ETFs and its gradual separation from traditional market patterns, the groundwork is laid for potential future price increases. Whether Bitcoin will successfully breach the $100,000 mark soon will depend largely on enduring institutional interest and the overall market landscape.
For now, Bitcoin stands resilient amid global economic challenges, including ongoing U.S.-China trade tensions. As it maintains levels above $90,000, investor confidence is growing, possibly setting the stage for new record highs in the weeks to come.
