TLDR
- Bitcoin price surged 11% between April 20-26, reaching near $94,000
- Record $3.1 billion in net inflows to spot Bitcoin ETFs over five days
- Bitcoin’s correlation with S&P 500 has decreased to 29%, showing growing independence
- Institutional investors show bullish positioning despite retail trader caution
- Bitcoin remains close to two-month high of $95,000 with potential to reach $100,000 soon
Bitcoin (BTC) has demonstrated remarkable strength over the past week, climbing 11% between April 20 and April 26 to reach close to $94,000. This upward movement has positioned the leading cryptocurrency near a two-month high, with many analysts now eyeing the psychological $100,000 barrier as the next target.
The price rise came amid positive signals from the Trump administration about easing import tariffs and strong corporate earnings reports, which helped boost market sentiment across various asset classes.
One of the primary drivers behind Bitcoin’s recent performance has been the extraordinary level of investment flowing into spot Bitcoin exchange-traded funds (ETFs). These vehicles attracted a record $3.1 billion in net inflows over just five days, according to data from sosovalue, marking the highest level since November.
This influx of capital highlights growing institutional interest in Bitcoin as a legitimate asset class, despite ongoing debates about its role in investment portfolios.
Decoupling from Traditional Markets
An interesting development in Bitcoin’s market behavior is its weakening correlation with stock markets. The 30-day correlation between the S&P 500 and Bitcoin has dropped to 29%, well below the 60% level observed from March to mid-April.
While this lower correlation doesn’t indicate a complete decoupling, as investor sentiment remains influenced by macroeconomic factors, it suggests that Bitcoin is increasingly trading on its own merits rather than simply mirroring technology stocks.
This growing independence comes at a time when gold reached an all-time high of $3,500 on April 22 but failed to maintain its bullish momentum. Some traders had questioned the “digital gold” narrative for Bitcoin, but its price stability above $90,000 may be reinforcing confidence in its value proposition.
The contrast is even more apparent when looking at recent market gains. While Bitcoin rose by 11% in the past week, the S&P 500 added about 5.6%, and the Nasdaq composite index gained 8.3%.
Institutional Optimism vs. Retail Caution
The derivatives market presents an interesting divergence in sentiment between different types of traders. Perpetual Bitcoin futures contracts, which are popular among retail traders, have shown signs of bearish momentum.
The sharp negative funding rates recorded on April 26 are unusual during bull markets, as they indicate stronger demand from sellers. However, this bearish positioning has resulted in over $450 million in BTC short positions being liquidated since April 21 as prices continued to climb.
In contrast, professional traders appear more optimistic. The two-month Bitcoin futures premium rose to its highest level in seven weeks on April 26, indicating greater interest in bullish positions among institutional investors.
At 6.5%, this metric remains within the neutral 5% to 10% range but is moving away from bearish territory. This disconnect between retail caution and institutional confidence could be a key factor in Bitcoin’s potential push above $100,000.
Central Banks Remain Skeptical
Despite growing market acceptance, central banks continue to resist the idea of Bitcoin as a reserve asset. Swiss National Bank President Martin Schlegel recently rejected calls for the central bank to hold Bitcoin in its reserves.
Schlegel cited concerns over the volatile nature of cryptocurrencies, especially during market crises. “Cryptocurrencies also are known for their high volatility, which is a risk for long term value preservation… cryptocurrencies for the moment do not fulfill the high requirements for our currency reserves,” he stated at the bank’s shareholder meeting on Friday.
These comments align with anti-crypto stances among several other major central banks, which have largely dismissed proposals suggesting Bitcoin as a reserve asset.
The broader cryptocurrency market has generally followed Bitcoin’s upward trajectory. Ether (ETH), the second-largest cryptocurrency, traded near $1,796.60, while XRP saw gains of 4.6% to reach $2.2733.
Solana and Cardano added over 2% each, with Solana also benefiting from increased on-chain activity around $TRUMP, which soared in value last week following U.S. President Donald Trump’s promise of a dinner for the memecoin’s biggest holders.
Bitcoin’s price has stabilized around $94,051 as of Monday, remaining close to its recent peak. Trading volumes suggest the market is consolidating before potentially making another move higher.
The continued influx of capital into Bitcoin ETFs, combined with its growing independence from traditional market movements, creates a favorable environment for further price appreciation. Whether Bitcoin can break through the $100,000 barrier in the near term will likely depend on sustained institutional interest and broader market conditions.
For now, Bitcoin continues to show resilience in the face of global economic uncertainties, including ongoing tensions in U.S.-China trade relations. Its ability to maintain price levels above $90,000 is increasing investor confidence and may pave the way for new all-time highs in the coming weeks.
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