Summary
- Bitcoin continued to gain despite geopolitical uncertainty as it attempted to move back above the $80,000 level.
- Markets said the $80,000 range could serve as a near-term pivot point close to buyers' breakeven level, making it an area where profit-taking could emerge.
- Bitcoin has risen about 16%% in April, increasing the likelihood of a double-digit monthly gain, helped by short-covering, a recovery in institutional demand, and net inflows into spot ETFs.
Bitcoin continued its advance despite geopolitical uncertainty, testing the $80,000 level again.
Bloomberg reported on April 27 that Bitcoin rose as much as $79,488 intraday, its highest level since late January. Ether also climbed more than 1%.
The gains came amid uncertainty surrounding U.S.-Iran tensions and developments involving the Strait of Hormuz. Asian stocks rose after Axios reported that Iran had delivered a new proposal to the U.S. aimed at reopening the strait. The increase in international oil prices also partly eased.
Markets are focused on the $80,000 range as a potential near-term inflection point. Rachael Lucas, an analyst at BTC Markets, said the level is close to the breakeven point for recent buyers and could prompt profit-taking.
The recent rebound is being linked to improved market flows. Short-covering and a recovery in institutional demand helped lift prices. Bitcoin is up about 16% in April, raising the likelihood of its first double-digit monthly gain since May last year.
Institutional money has also continued to flow in. Strategy, led by Michael Saylor, bought about $3.9 billion worth of Bitcoin this month.
U.S. spot Bitcoin exchange-traded funds have recorded about $2.5 billion in net inflows in April, pointing to a recovery in demand. That is roughly double the March level and suggests institutional investors are returning after months of outflows.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
