Bitcoin edged close to $78,000 on Friday, buoyed by renewed demand for U.S.-listed spot Bitcoin exchange-traded funds (ETFs), even as broader markets grappled with rising oil prices and a strengthening dollar. The leading cryptocurrency traded around $77,500 in London, after hitting an intraday high of $78,600 before pulling back to a low of $77,068.
The latest inflows into spot Bitcoin ETFs have been a key pillar of support. Data from Farside Investors shows that these funds attracted $223.3 million on April 23, following a $335.8 million haul the previous day. This sustained inflow has helped Bitcoin remain within striking distance of the psychologically important $80,000 level.
However, the broader macroeconomic environment remains challenging. Brent crude oil climbed to $106.60 a barrel, driven by ongoing tensions in the Middle East and stalled U.S.-Iran negotiations. At the same time, the U.S. dollar was on track for its first weekly advance in three weeks, adding further pressure on risk assets like cryptocurrencies.
Bitcoin briefly surpassed $79,000 on Wednesday, marking its fourth consecutive weekly gain. Yet, the rally has been tempered by these external headwinds. Market participants are now watching whether ETF demand can sustain the momentum and push prices through the $80,000 resistance level, or if profit-taking will set in.
Akshat Siddhant, lead quant analyst at Mudrex, attributed the recent strength to robust ETF inflows and dwindling Bitcoin reserves on exchanges. Lower exchange balances typically indicate reduced selling pressure, which can support price advances. Vikram Subburaj, CEO of Giottus, noted that the current momentum is being driven by institutional appetite rather than retail speculation, with the mid-$77,000 range serving as Bitcoin’s short-term equilibrium.
In contrast, Ethereum faced headwinds. Spot Ethereum ETFs recorded $75.9 million in outflows on April 23, breaking a 10-day streak of inflows. Ether fell about 1.8% over 24 hours, trading near $2,317, according to SoSoValue data.
Analysts caution that the rally may lack depth. CoinSwitch Markets Desk observed that much of Bitcoin’s surge toward $79,000 was fueled by futures trading rather than consistent spot demand. Futures-based activity can amplify price swings, especially when positions are unwound. BMO’s chief FX strategist Mark McCormick warned that the next three to six months will not resemble the pre-conflict normal, citing rising drawdown risk and deteriorating cross-asset signals.
For now, Bitcoin remains stable, avoiding a sharper pullback. A decisive break above $80,000, supported by continued ETF inflows, would signal a clear bullish path. Conversely, a slip below the mid-$77,000 zone could open the door for oil, dollar strength, or shifts in derivatives markets to dictate the next move.
