On Wednesday, Bitcoin maintained its position above the $74,000 mark as global markets experienced a surge in risk appetite. This sentiment saw Asian stock indices and Wall Street benchmarks regain their footing following losses incurred since the onset of the US-Iran conflict at the end of February.
Ether outperformed with a 4% weekly gain, reaching nearly $2,325, while Bitcoin advanced by 3.9%. In contrast, Solana fell by 1.5% to $83, Cardano’s ADA dropped by 1%, and Dogecoin slid 1.3% to $0.093. Tron defied the general trend with a 3% increase over the week.
The CSI 300 from China has become the latest index to recover fully from declines related to the conflict, joining Taiwan’s and Singapore’s indices in doing so. The S&P 500 is nearing its record high set at the end of January.
Market optimism that discussions between the US and Iran are likely to resume soon has kept crude oil prices below $100 per barrel, alleviating inflation pressures that have burdened markets throughout March.
The current Bitcoin price is close to the estimated average entry level for holders of U.S. spot bitcoin ETFs, potentially acting as a floor rather than a ceiling. Investors who held their positions through the dip below $60,000 are unlikely to sell at breakeven, thus reducing the potential overhead supply pressure.
On April 6, U.S. spot ETFs experienced net inflows of $471 million, marking their strongest single-day intake since February and bringing cumulative inflows beyond $56 billion since these products launched in January 2024. This trend is viewed by some analysts as indicative of a bullish market structure.
“This signifies a positive outlook for adoption despite the lack of self-custody,” stated Vikrant Sharma, founder of CakeWallet. “Institutions investing $471 million in one day and exceeding $56 billion cumulatively signals that Bitcoin is attracting an entirely new set of long-term investors. While it’s natural to see profit-taking from self-custody wallets, the absence of a price collapse indicates strong market confidence,” he added.
Market players are also anticipating potential Federal Reserve rate cuts later this year, which could inject additional liquidity into risk assets after months of stagnant trading.