Thomas Daniels
Bitcoin’s robust rally over the Easter weekend signals a notable shift in market sentiment, propelled largely by institutional investors. However, the sustainability of this momentum remains an open question.
On April 22, Bitcoin (BTC) surged 9%, breaching the $91,000 mark and trading at $91,125 — a performance that sharply diverged from the equity markets’ muted recovery. Bitcoin’s trajectory more closely mirrored gold’s bullish ascent, with the precious metal reaching a record high of $3,500.
Beyond the headline price action, Bitcoin’s derivatives market paints an even more bullish narrative. According to CoinGlass data, Bitcoin open interest (OI) jumped 17% to $68.3 billion, a two-month peak. Open interest, which reflects the total capital deployed in Bitcoin derivatives, suggests growing confidence among sophisticated traders.
Market conditions also entered contango, where futures prices — particularly on CME Bitcoin futures — exceed spot prices. This structure typically signals expectations of higher future prices, as investors leverage futures to amplify their exposure.
Institutional Demand Reawakens
An important gauge of market composition, the Coinbase Bitcoin Premium Index, offers further insights. This index measures the price spread between Bitcoin on Coinbase Pro — favored by U.S. institutional investors — and Binance, which caters more to retail participants globally.
While retail traders dominated earlier in April, institutional demand surged over April 21–22, with the Coinbase premium climbing to 0.16%, per CoinGlass.
One of the most prominent institutional buyers, MicroStrategy, led by Michael Saylor, disclosed a major Bitcoin acquisition on April 21. The company added 6,556 BTC for approximately $555.8 million at an average price of $84,785, increasing its holdings to a staggering 538,200 BTC, now worth about $48.4 billion.
Meanwhile, Japanese firm Metaplanet also expanded its Bitcoin treasury, acquiring 330 BTC to bring its total holdings to 4,855 BTC, according to its CEO.
Traditional financial products tied to Bitcoin also experienced renewed inflows. Bitcoin ETFs recorded $381 million in net inflows on April 21 — a critical reversal after weeks of consistent outflows. Since February, ETFs had reported 33 days of net outflows compared to just 21 days of inflows, highlighting a potential turning point for TradFi-aligned investors.
Macro Factors: A Weakening Dollar Strengthens Bitcoin’s Case
Amid growing concerns over U.S. tariff policies and political pressure on the Federal Reserve, the U.S. dollar has weakened significantly. The U.S. Dollar Index has been in steady decline since February, reaching lows not seen since 2022.
Political tensions between former President Donald Trump and Federal Reserve Chair Jerome Powell have escalated, with speculation about potential interventions against the Fed’s independence. These developments have unsettled traditional financial markets and enhanced Bitcoin’s appeal as a non-sovereign, decentralized store of value.
Crypto analyst Rekt Capital emphasized Bitcoin’s technical breakout, stating:
“The multimonth downtrend is over. And when a technical downtrend is broken, technical uptrends emerge.”
As trust in conventional monetary systems wavers, Bitcoin’s immutable monetary policy and resistance to centralized control increasingly position it as a viable alternative for investors seeking financial sovereignty.
