Since the April 2024 halving, Bitcoin’s total daily energy value has skyrocketed to a dizzying $130,000. For whatever reason, though, today it’s a 40% discount to its intrinsic value. Spot Bitcoin ETF purchasing has blown up this week leading to a staggering +$3 billion in inflows. This enormous enthusiasm spurred a huge price surge, handing the cryptocurrency its biggest weekly gain since November 2024. Our closest recent analogue was the breakout over the 4th of July weekend. It was up 13% between November 5-9, then went up an additional 15% on November 10-11.
Speaking of accumulation, April 25 saw more than the equivalent of 36,000 BTC withdrawn from exchanges Coinbase and Binance combined — a powerful, bullish accumulation signal. Binance specifically had outflows of 27,750 BTC on the day.
"this is the third largest Bitcoin outflow in the exchange’s history" - Joao Wedson
Despite the intense selloff, the cryptocurrency has been consolidating at a higher range after its breakout. Some Bitcoin analysts expect the current fractal pattern seen in Q4 2023 to continue, potentially leading prices past $100,000. Bitcoin must now contend with overhead resistance at $96,100. Market analysts estimate that a 7-10% increase over the next few days might be enough to send Bitcoin soaring above the $100,000 threshold.
The recent flow tsunami into spot Bitcoin ETFs has added some extra fuel to the positive market sentiment.
"institutions went on a $3 billion ‘Bitcoin bender’" - Eric Balchunas
This tidal wave of institutional capital further illustrates that Bitcoin has gone mainstream.
“In 2021, massive outflows didn’t prevent the dump triggered by China’s crypto ban (April–May). On the other hand, continuous outflows over several days, like during the FTX collapse, signaled a bottom and recovery.”
