Following a volatile week, Bitcoin has entered a period of consolidation, albeit at an elevated price point. The cryptocurrency is trading in a narrow band just above $95,000, supported by substantial inflows into spot ETFs and regulatory developments that are providing tailwinds. This sideways movement raises the question: is this the calm before a renewed assault on the $100,000 threshold?
Institutional ETF Flows Fuel the Rally
A primary catalyst for Bitcoin’s current strength is the significant capital moving into U.S.-based spot Bitcoin ETFs. Institutional players are increasingly utilizing these vehicles to gain exposure without the complexities of direct custody.
Key data highlights this sustained demand:
* Spot Bitcoin ETFs recorded net inflows of approximately $1.8 billion over a four-day trading period.
* A single day saw inflows exceed $843 million, marking the strongest daily figure since October.
* BlackRock’s IBIT ETF has been a dominant recipient, capturing a large share of the recent investments.
This persistent institutional buying is absorbing available supply and providing a solid foundation for prices, even as Bitcoin approaches six-figure valuations. Market analysts interpret this as evidence that larger investors view the current consolidation phase as an opportunity to establish or increase positions.
Technical Landscape Remains Constructive
From a chart perspective, the outlook is positive. Bitcoin is stabilizing well above the 50-day moving average, which sits near $90,000. While the asset remains about 20% below its 52-week high, the distance from the yearly low has expanded considerably—a sign of a maturing upward trend.
Recent price action formed a higher high on the daily chart, a classic indicator of a healthy bullish trend. Furthermore, the Relative Strength Index (RSI) reading near 38 suggests the market is not overbought, leaving room for potential upward movement before conditions become excessively heated. Any short-term pullbacks are therefore occurring within a broadly positive structural framework.
Political Endorsement from West Virginia
Adding to the favorable backdrop is a symbolic political development. Legislators in West Virginia have introduced a bill known as the “Inflation Protection Act” (Senate Bill 143). This proposal would authorize the state’s treasury to hold Bitcoin as a reserve asset.
Should investors sell immediately? Or is it worth buying Bitcoin?
The initiative carries important signaling power:
* It formally introduces Bitcoin into discussions about state reserve portfolios.
* The cryptocurrency is framed as a potential hedge against monetary debasement.
* The debate reinforces Bitcoin’s growing perception as a legitimate long-term store of value.
While not a federal regulatory breakthrough, this move contributes to an environment where Bitcoin is increasingly seen as a credible component for institutional and public financial strategies.
Derivatives Market Shows Healthier Composition
The derivatives market is displaying signs of stabilization after a period of high leverage. The aggregate Open Interest for Bitcoin derivatives currently sits 28–30% below its October peak. A reduction in leveraged positions typically lowers the risk of sudden, cascading liquidations, leading to more stable price discovery.
Concurrent observations support this view:
* Coinbase Advanced has seen a notable rise in inflows, often associated with over-the-counter (OTC) deals and institutional activity rather than retail-driven volatility.
* The “Realized Profit” metric remains well below the peaks seen in Q4 2025, indicating that long-term holders are currently less inclined to take profits and are instead maintaining their exposure.
Collectively, this points to a market with less speculative excess and a stronger foundation of committed, long-term investors.
Market Sentiment and the Path Forward
Overall market sentiment remains firmly optimistic. The Fear & Greed Index is hovering in “Greed” territory, reflecting renewed confidence after Bitcoin successfully defended the $90,000 level earlier this month. Traders, however, are aware of the next significant resistance zone between approximately $98,000 and $103,000.
Two factors will be crucial in the near term. First, Bitcoin’s ability to maintain its footing above $95,000 through the weekly close. Second, whether the robust pace of ETF inflows can be sustained. If both conditions hold, a test of the $100,000 mark and a challenge of previous record highs become a plausible scenario—one that is increasingly supported by technical, fundamental (ETF flows), and political developments.
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