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Bitcoin’s price is currently consolidating around the $94,000 mark, with a 0.85% gain on Friday, maintaining the significant 10% gain it experienced earlier in the week. This upward momentum has been largely attributed to robust institutional demand, evidenced by substantial inflows into U.S. spot Bitcoin Exchange Traded Funds (ETFs). These ETFs recorded a total inflow of $2.68 billion up to Thursday, marking the highest weekly inflow since mid-December.
Furthermore, a prevailing risk-on sentiment appears to be influencing the market, coinciding with the appointment of a known proponent of digital assets, Paul Atkins, as the new head of the U.S. Securities and Exchange Commission (SEC), and a perceived softening in the U.S. administration’s stance on the Federal Reserve (Fed) and trade relations with China.
The recent price surge in Bitcoin has been significantly supported by institutional buying activity. Data indicates that U.S. spot Bitcoin ETFs saw a cumulative inflow of $2.68 billion by Thursday, representing the largest weekly influx since Bitcoin’s brief ascent above $100,000 in December. Continued or increasing inflows of this magnitude could potentially drive Bitcoin prices even higher.
Publicly traded companies have also demonstrated strong demand for Bitcoin this week. MicroStrategy announced a significant acquisition of 6,556 BTC for $555.8 million on Monday. Similarly, Japanese investment firm Metaplanet acquired an additional 330 BTC for $28.2 million during the same period and further increased its holdings by another 145 BTC on Thursday, bringing its total Bitcoin to 5,000.
It is believed that the buying activity of investment firms generally has a bullish impact on Bitcoin’s price due to heightened demand, reduced circulating supply, and improved market sentiment. Should this trend persist, Bitcoin could experience more stable long-term price appreciation. However, short-term price fluctuations are anticipated as the market adapts to this increased institutional involvement.
The appointment of Paul Atkins as the new Chairman of the U.S. Securities and Exchange Commission (SEC) on Monday has been met with positive sentiment within the cryptocurrency community. Atkins, who previously served as an SEC Commissioner, has a history of supporting the digital asset industry. His past advocacy for regulatory clarity and his direct involvement in the sector have led to his perception as being pro-crypto.
It is believed that his appointment could usher in a less restrictive regulatory environment for digital assets compared to his predecessor, whose approach was seen by many as hindering the growth of the crypto market.
Recent reports indicate a potential shift in the U.S. administration’s approach to key economic factors. Global markets reportedly responded positively to statements suggesting that President Trump is not planning to remove Federal Reserve (Fed) Chair Jerome Powell. Additionally, the President reportedly indicated that previously discussed high tariffs on China are likely to be reduced significantly.
It is believed that this apparent softening stance on both the Federal Reserve and trade tensions with China has bolstered investor confidence and contributed to the prevailing risk-on sentiment, benefiting assets perceived as riskier. Bitcoin has notably outperformed traditional stock markets in recent weeks, seemingly decoupling its correlation since the announcement of Liberation Day tariffs. It is believed that potential progress in trade negotiations or a more dovish stance from the Federal Reserve could act as catalysts for Bitcoin’s next significant upward trend.
Technically, Bitcoin’s price broke above its 200-day Exponential Moving Average (EMA) at $85,000 on Monday, subsequently closing above $93,000 on Thursday, marking a 10.45% increase. However, it failed to close above its March high of $95,000 and is currently consolidating around $93,500.
The current price action suggests a period of indecision, with two potential scenarios emerging. Firstly, profit-taking by holders could lead to a mild correction, potentially pushing the price down to the psychological support level of $90,000. This is supported by the Relative Strength Index (RSI) on the daily chart, which, after being rejected near the overbought level of 70, indicates a slight weakening of bullish momentum.
Alternatively, Bitcoin could resume its upward trajectory and close above the $95,000 resistance level, potentially extending the rally towards the next daily resistance at $97,000. In this scenario, the RSI would likely move towards and remain in overbought territory.
Despite the expiration of a substantial $7.2 billion in Bitcoin options contracts on Friday, the price of Bitcoin remained relatively stable. It is believed that while large options expiries typically introduce market volatility, the steady price action could be attributed to significant Bitcoin withdrawals from centralized exchanges, reaching a two-year high, and data suggesting accumulation by large Bitcoin holders during the recent rally.
It is believed that substantial outflows from exchanges indicate a potential shift towards a re-accumulation phase by investors. Furthermore, data suggests that large players have been actively buying into the recent price increase, with accumulation trends mirroring levels seen in late 2024 and early 2025.
