Analysis: Institutional Funds Drive Bitcoin's Strength, but Breaking Through the $75,000 Resistance Level Still Faces Pressure

Odaily News Bitcoin briefly broke above $74,000 on Monday, continuing its upward trend. Analysis suggests strong institutional demand is driving prices. Additionally, global crypto ETF products saw net inflows of approximately $1 billion last week, marking three consecutive weeks of positive inflows. U.S. Bitcoin spot ETFs dominated these inflows, as Strategy and other firms continued to increase their Bitcoin holdings. BlackRock's Bitcoin ETF attracted around $1.75 billion in inflows over the past three weeks.

Despite the return of institutional capital, market structure indicates the rally still has vulnerabilities. Crypto market liquidity has tightened since late January, with the profit ratio for short-term holders below 50%. The options market shows a concentration of open interest around $75,000, which could amplify price volatility if that level is breached. Analysis points out that Bitcoin has formed an accumulation zone within the $62,000–$72,000 range and may continue to trade sideways in the short term. A breakout above the $75,000 options concentration zone could accelerate the uptrend through derivative hedging; failure to break through may lead to consolidation as investors monitor developments in the war, energy markets, and Federal Reserve policy moves. (The Block)