Bitcoin experienced a slight 0.04% dip on Saturday, April 26, ending a seven-day winning streak during which it had closed at $94,736 on Friday. Despite this minor setback, recent trade developments have significantly boosted demand for risk assets, including Bitcoin.
The catalyst for this market optimism came from US President Donald Trump, who signaled a softer stance on China. During the preceding seven-day rally, Bitcoin surged 6.7% on April 22 following Trump’s pledge to be “very nice to China.” This political shift has created a more favorable environment for cryptocurrency investments.
Record-Breaking Bitcoin ETF Performance
Bitcoin spot ETF flow trends clearly reflect this improved market sentiment. According to Farside Investors, total net inflows reached an impressive $3,033 million for the week ending April 25—the largest influx since these ETFs launched in January 2024.
The iShares Bitcoin Trust (IBIT) led the charge with net inflows of $1,445.7 million, its strongest performance since December. Other major players also saw substantial gains, with ARK 21Shares Bitcoin ETF (ARKB) and Fidelity Wise Origin Bitcoin Fund (FBTC) reporting net inflows of $621.1 million and $573.8 million respectively.
Market intelligence platform Santiment highlighted the significance of these developments: “As Bitcoin has recovered as high as $95.8K today, we are seeing the highest week of net inflows to BTC ETFs since the week before Trump’s inauguration in mid-January. Institutions like BlackRock have played a large part in the crypto-wide bounce traders were waiting for.”
BlackRock’s dominance in the ETF space is particularly noteworthy. Since its January 11, 2024 launch, IBIT has accumulated net inflows of $41,200 million, helping to offset the $22,688 million in GBTC outflows. Fidelity’s FBTC ranks second with $11,865 million in net inflows.
Supply In Profit: A Key Market Indicator
Another critical metric, Bitcoin “Supply in Profit,” has recently crossed the 87% mark—a strong indicator of investor confidence.
This metric calculates the proportion of Bitcoin’s total supply whose purchase price is lower than the current market value. The latest market peak saw this indicator rise to 87.3%, up from 82.7% during the previous rally when Bitcoin was around $94,000.
While a high percentage of supply in profit can signal potential selling pressure, it also demonstrates sustained demand. According to Glassnode, this indicator has historically reached high levels before market corrections but has never sustained the 90% threshold that traditionally signals market euphoria. If Bitcoin can maintain these high levels without triggering massive selling, it could extend its current rally.
Investors should remain vigilant, as selling pressure can emerge at any time, particularly from retail investors and short-term holders rather than whales or long-term holders. However, as long as institutional demand remains strong, Bitcoin appears well-positioned to weather potential corrections in the short term.
In addition, global headlines pertaining to tariffs and geopolitical tensions could continue to influence safe-haven flows, especially as bitcoin has shown “digital gold” behavior during risk-off days while also trailing big tech sector stocks during risk-on scenarios.
The selloff in USD-denominated assets spurred by Trump’s criticism of Federal Reserve Chairman Jerome Powell has also triggered monetary policy uncertainty, which had proved beneficial for bitcoin and bearish for the US currency. Lastly, regulatory updates in the crypto industry could also be directional catalysts while investors continue to wait for more progress on the “strategic crypto reserve” and sector-friendly policy changes.