Can Bitcoin Sustain Recent Boost? $725M Institutional Backing Fuels Crypto Surge

Key Points

• Crypto market witnessed a turnaround last week with $644 million in inflows, ending five weeks of outflows.
• Bitcoin led the recovery with $724 million, reversing its $5.4 billion outflow trend from previous weeks.

The crypto market experienced a significant change last week, recording $644 million in inflows and putting an end to a five-week streak of outflows.

This shift is an indication of increased investor confidence, particularly as institutional demand continues to grow.

Bitcoin Leads Recovery

Bitcoin managed to pull in $724 million, effectively reversing its previous trend of $5.4 billion in outflows.

On the other hand, Ethereum faced $86 million in outflows, while Solana gained $6.4 million, suggesting that investors are still selective in their choices.

Despite multiple market shocks, Bitcoin’s dominance remains solid, consistently holding above 60% – a level observed before the elections.

This stability is interesting, especially considering the substantial drop from its all-time high of $109k to $78k.

Bitcoin’s Dominance and Market Conditions

The $724 million in crypto inflows further solidified the sustained demand for Bitcoin, bolstering its market dominance.

However, the difference in crypto inflows also highlighted the underperformance of altcoins, especially Ethereum, which has experienced consecutive outflows from ETFs over the past two weeks.

Amid speculations of a bearish Q2 due to changing fiscal and monetary policies, the $644 million crypto inflows may act as a critical catalyst for a market reversal.

These inflows into Bitcoin signal robust institutional confidence and, coupled with reduced selling pressure, could potentially trigger a rebound in the coming quarters.

As Q2 unfolds under bearish conditions, the $5.4 billion in outflows from Bitcoin ETFs over the past few weeks deserves attention.

If institutional and retail inflows continue to follow recent patterns, Bitcoin might be able to withstand the volatile market conditions.

However, if crypto inflows reverse, the rally of Bitcoin could be at risk, with a potential retraction to the $80k support zone being a viable downside target.