Institutional confidence in Bitcoin shows early signs of returning, QCP Capital says
Bitcoin’s latest sharp rebound past $87,000 isn’t just another long-weekend rally, analysts say, as early signs point to renewed safe-haven interest.
Bitcoin’s (BTC) holiday rebound may be more than just a short rally, according to analysts at QCP Capital, who say institutional investors are starting to return.
In an analytical research report on Monday, the analysts say they’re already seeing “early signs of institutional confidence returning,” adding that spot Bitcoin exchange-traded funds flows turned positive last week with net inflows of $13.4 million, after the previous week’s $708 million in outflows.
The reversal came as BTC’s price surged past $87,000 during early Asia hours in what the analysts called a “sharp reversal that clawed back much of the selloff” sparked by U.S. President Donald Trump’s surprise “Liberation Day” announcement.
“While crypto markets are no strangers to illiquid, long-weekend rallies, this move stood in stark contrast to December’s muted Santa Rally. This time, BTC delivered.”
QCP Capital
As the analysts note, Bitcoin isn’t alone as other asset classes are also showing signs of risk-off sentiment, with gold reaching new all-time highs and equities closing the week in the red. According to the analysts, the current environment may revive interest in Bitcoin as a safe-haven asset “should this dynamic hold.”
Still, QCP remains cautious as they keep their eyes on the key $88,800 resistance level. Until Bitcoin breaks that level, the analysts “remain cautious about drawing any firm conclusions.”
As crypto.news reported earlier, spot Bitcoin ETFs in the United States saw modest weekly inflows as BTC rallied past $85,000, driven by expectations of a softer Fed stance on rate cuts amid President Trump’s push to replace the Federal Reserve chair.
Most of the inflows went to BlackRock’s IBIT, which pulled in $186.5 million, followed by Bitwise’s BITB with $23.8 million, according to Farside data. Other ETFs like Grayscale’s mini BTC Trust, Invesco’s BTCO, Franklin’s EZBC, and VanEck’s HODL also chipped in, adding a combined $26.3 million.
