Bitcoin’s recent surge in price is being fueled by a significant influx of institutional investment, with analysts predicting the cryptocurrency will reach $80,000 within days. Gabe Selby, head of research at CF Benchmarks, attributes this bullish sentiment to prominent investors committing substantial resources, contrasting the current activity with the speculative actions of retail traders.
Selby emphasized that the current price movement is largely supported by major institutional allocators, such as financial advisers and wealth management channels, rather than short-term trades typically associated with retail investors. This comes in the wake of a roughly 10% increase in Bitcoin’s value over the past month, pushing its price close to $78,000. Despite this increase, Bitcoin remains approximately 38% below its peak of nearly $126,000 reached in October.
Recent data from DefiLlama highlighted that U.S. spot Bitcoin ETFs attracted $2.5 billion in net investments in April alone, following a positive trend initiated in March with $1.3 billion. Among the most significant inflows was a notable $660 million on April 17, marking the largest daily influx since late 2025, with BlackRock’s IBIT accounting for about 85% of this total.
At the center of this rally is the investment strategy of a company named Strategy, which recently acquired approximately 34,164 Bitcoin, valued at around $2.5 billion. This strategic acquisition brought the firm’s total Bitcoin holdings to over $60 billion. Noteworthy is that around 85% of this purchase was financed through its STRC preferred equity, which offers an attractive 11.5% dividend linked directly to its Bitcoin assets. This financial instrument has become popular among yield-seeking investors, striking a balance between bonds and common stock while enabling continuous Bitcoin accumulation.
Furthermore, the resilience of Bitcoin was put to the test following a notable exploit in a decentralized finance protocol that resulted in approximately $10 billion being withdrawn across various cryptocurrency projects. However, Bitcoin’s market sentiment remained robust, indicating a shift compared to previous cycles when investor panic typically exacerbated the situation.
The current strength in equities is also lifting Bitcoin, according to Selby. He noted a rising correlation between Bitcoin and the Nasdaq 100, which increased from 0.49 in early October to 0.58 by late April. This suggests a renewed risk appetite in the broader market, benefiting Bitcoin in the process. Economist Ed Yardeni echoed this sentiment, mentioning in a recent note that market outlooks have become more optimistic despite existing global uncertainties and high oil prices.
As of the latest updates, Bitcoin has seen a minor drop of 0.6% in the past 24 hours, trading at approximately $77,812, while Ethereum fell 1.6% to around $2,314, illustrating the volatility still present in the cryptocurrency market.
