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

Odaily News Bitcoin briefly broke through $74,000 on Monday, continuing its upward trend. Analysis suggests that strong institutional demand is driving prices. Additionally, global crypto ETF products saw net inflows of approximately $10 billion last week, marking three consecutive weeks of positive inflows. U.S. Bitcoin spot ETFs dominated these inflows, with Strategy and other firms continuing 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 funds, market structure indicates that the rally still has vulnerabilities. Crypto market liquidity has tightened since the end of January, with the profit ratio for short-term holders below 50%. The options market shows a concentration of open interest around the $75,000 level, which could amplify price volatility if that level is breached. Analysis points 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 $75,000 options concentration zone, derivatives hedging could accelerate the rise; failure to break through may lead to consolidation, with investors watching developments in the war, energy markets, and Federal Reserve policy moves. (The Block)