Analysis: Institutional funds are driving Bitcoin's strength, but there is still pressure to break through the resistance level of $75,000
According to The Block, Bitcoin briefly broke through $74,000 on Monday, continuing its upward trend this week. Analysts believe that strong institutional demand is driving the price, and additionally, global crypto ETF products saw a net inflow of about $1 billion last week, marking three consecutive weeks of positive inflows, with the U.S. Bitcoin spot ETF dominating. Strategy and other companies continue to increase their Bitcoin holdings, and BlackRock's Bitcoin ETF has attracted about $1.75 billion in inflows over the past three weeks.
Despite the return of institutional funds, the market structure shows that the upward trend still has vulnerabilities. Liquidity in the crypto market has tightened since the end of January, with the profit ratio for short-term holders below 50%. The options market has a concentration of open contracts around $75,000, which could amplify price volatility when breaking through that level.
Analysts point out that Bitcoin has formed an accumulation zone in the $62,000--$72,000 range, and may maintain range-bound fluctuations in the short term. If it breaks through the concentrated area at $75,000, derivatives hedging could accelerate the rise; if it does not break through, it may remain solidified, with investors watching the developments in the war, energy markets, and Federal Reserve policies.
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