Institutional Interest in Bitcoin Increased in April! Here are Analysts' Expectations Moving Forward!

According to the blockchain analysis firm Glassnode, Bitcoin continues to trade comfortably above the $100,000 level, supported by ongoing institutional demand and a resilient "buy the dip" mentality among investors.

Analysts Say Bitcoin Holds Above 100 Thousand Dollars with the Momentum of Institutional Inflows

In its latest weekly report, Glassnode attributed Bitcoin's steady climb from its lowest point of $75,000 in April to its recent peak of $104,000, particularly following the increase in demand for spot Bitcoin ETFs, to institutional inflows and a strong accumulation phase.

Between mid and late April, daily net inflows to spot Bitcoin exchange-traded funds listed in the US averaged $389 million, with a single-day peak of $933 million on April 22, reaching the highest level since January 17. Although ETF flows have since dropped to about $58 million per day, analysts noted that institutional interest continues.

Glassnode wrote, "ETF inflows have stopped since then, but the flows show that institutional interest in Bitcoin remains relatively strong."

Glassnode stated that Short-Term Holders (STH) who purchased in the last 155 days accumulated BTC heavily between $93,000 and $95,000. The recent price rally increased the STH Supply in the Profit/Loss Ratio to 9.0, meaning that 90% of these holders are now in profit.

This unfulfilled gain wave is likely attributed to some profit-taking activities that analysts say have cooled the rally and contributed to Bitcoin's current consolidation between $102,000 and $103,700.

Glassnode stated, "The range of 93,000 to 95,000 dollars can serve as a strong support level in the event of a short-term market pullback."

BRN's chief research analyst Valentin Fournier warned that although technical indicators are not flashing red, there are signs of a "slight selling signal" as the weekend approaches.

Fournier said, "The market seems to be overbought, but there are no strong reversal signals. Since institutional activities typically decline over the weekend, the risk of a downward shift is increasing," in an email he sent on Friday.

Despite potential short-term fluctuations, analysts maintain a cautiously optimistic outlook for Bitcoin, supported by strong institutional flows and robust technical support levels below the current prices.