Bitcoin slipped back below $80,000 in early Monday trading, pulling back from a three-month high as a rally built on ETF inflows and leveraged long positions met resistance.
The leading cryptocurrency was trading at $79,838 as of 07:15 UTC on 4 May, up 1.87% over the preceding 24 hours, but struggling to sustain the $80,000 level first breached overnight, its highest level since 31 Jan.
Ether gained 2.69% over 24 hours to $2,370, Solana rose 1.2% to $84.88 and XRP added 1.68% to $1.41, while Dogecoin outperformed among majors, rising 3.91% to $0.1121.
ETF Flows Anchor Demand
US spot bitcoin ETFs recorded a fifth consecutive week of net inflows, with $630mn entering on Friday alone as total net assets surpassed $100bn, according to Farside data.
The sustained institutional engagement comes partly amid improving sentiment around US crypto legislation, including progress on stablecoin yield provisions that could clear a path for broader market structure bills in the Senate.
Geopolitical developments also supported risk appetite. Asian equities approached record levels as stronger-than-expected technology earnings lifted investor sentiment, providing a supportive backdrop for digital assets.
Derivatives Signal Caution
Onchain data present a more qualified picture. Bitcoin's April rally was driven almost entirely by growth in perpetual futures demand, while spot demand remained in contraction. That divergence between expanding leverage and subdued underlying buying has historically been associated with reversals once positioning unwinds.
Derivatives market participants appear to reflect this ambivalence. Prediction market data show a 53% probability of Bitcoin reaching $85,000 this month, but just a 25% chance of a move to $90,000.
The $80,000 level is widely characterized as a significant psychological threshold, and analysts note the advance remains sensitive to any slowdown in inflows or a shift in positioning.
