Bitcoin Reaches 11-Week High as BlackRock ETF Purchases 806,700 BTC

Author: Shenchao TechFlow

On Wednesday, Wall Street relaxed for the first time in a long while.

The Dow Jones closed up 340.65 points (+0.69%) at 49,490.03, the S&P 500 rose 1.05% to 7,137.90, and the Nasdaq Composite gained 1.64% to 24,657.57, with both the S&P 500 and Nasdaq setting new all-time highs. The Nasdaq also reached an intraday record high, becoming the first index to recover fully during this Iran conflict-driven market rally. The Russell 2000 small-cap index advanced 0.74%, while the VIX volatility index fell 2.97% to 18.92, as market fear continued to subside.

The thrust comes from both directions acting simultaneously.

First, Trump announced after closing that the ceasefire between the U.S. and Iran would be extended indefinitely, using unusual wording by describing the Iranian government as "seriously divided" and stating he would wait for Tehran to submit a "unified proposal" before deciding on the next steps. However, regardless of the phrasing, the market focuses on the outcome: missiles will temporarily no longer fly.

Second, earnings season continues to exceed expectations. GE Vernova (GEV) surged 8% on the day, as both its Q1 earnings and guidance surpassed forecasts—the underlying logic is straightforward: demand for power equipment from data centers is exploding, and the AI arms race has spread from chips to generators and transformers. United Airlines (UAL) rose about 1.5%, beating earnings estimates, but its Q2 EPS guidance slightly missed expectations, as high oil prices are eroding airline profits.

Tech stocks as a whole have outperformed the broader market. The semiconductor sector (SOX Index) has rebounded 35% from its March 30 low, reaching a new interim high. Nvidia has continued its winning streak this week, extending its historic 11-day rally.

This week’s most thrilling single stock has been the one short sellers least want to see: Tesla.

After hours on April 22, Tesla released its Q1 2026 results.

Non-GAAP earnings per share of $0.41 exceeded expectations of $0.37. Revenue reached $2.238 billion, surpassing the expected $2.228 billion. Gross margin was 21.1%, up 478 basis points year-over-year, reaching the highest level in recent years. After-hours stock price surged nearly 4% to $405.

These numbers are somewhat nuanced. Year-over-year, revenue increased by 16% and EPS by 52%—quite impressive. But the comparison with the prior quarter is harder to ignore: revenue was $24.9 billion last quarter (Q4 2025), but only $22.4 billion this quarter, showing a clear sequential decline. Energy business revenue came in at $2.41 billion, down 12% year-over-year. Deliveries totaled 358,023 vehicles, a full 50,000 fewer than production, and inventory continues to build up.

Musk’s key message on the earnings call was that Capex for the full year will be $25 billion, $5 billion higher than initially expected and roughly three times the full-year 2025 amount. CFO Taneja directly informed investors that the company’s free cash flow will be negative for the remainder of this year. Upon this announcement, the stock price declined after hours from its highs.

Even so, this earnings report was sufficient to at least temporarily silence those claiming Tesla’s core business is collapsing. TSLA has declined approximately 14% year to date, the worst performer among the MAG7. This beat provided a brief reprieve for bulls.

The ceasefire has been extended, but ships still cannot enter the Strait of Hormuz.

On Wednesday, WTI crude oil continued to rise, reaching the $93/barrel range during trading, while Brent crude broke through $101/barrel. Iran made a clear statement: it will not reopen the Strait of Hormuz as long as the U.S. Navy continues intercepting vessels. On the same day, Iran reportedly fired upon three container ships transiting the strait. Footage of the exchange quickly spread through the shipping industry, and rerouting oil tankers from Asia to the West via the Cape of Good Hope has become standard practice.

The current market estimate for supply losses due to the strait closure ranges between 4 to 5 million barrels per day, approximately 5% of global supply. This shortfall has no short-term resolution.

Gold reclaimed $4,758 per ounce on April 22, rising 0.82%, but remains nearly 10% below levels prior to the outbreak of war. The reason is unusual: rising oil prices have elevated inflation expectations, while a stronger U.S. dollar has suppressed gold’s safe-haven premium. Meanwhile, Kevin Warsh, a candidate for Fed Chair, testified before the Senate, emphasizing "maintaining independence" and calling for a new inflation response framework—but offered no specific measures. Markets remain uncertain about Warsh’s monetary policy stance, adding further volatility to U.S. Treasuries and gold.

This week's biggest player in the crypto market isn't retail investors—it's BlackRock.

According to CoinGecko data, Bitcoin rose 3.77% on April 22 to $78,568, reaching its highest level in 11 weeks, trading within the $76,000–$79,000 range. Ethereum followed suit, and the global crypto market capitalization rebounded to approximately $2.70 trillion, with a 24-hour trading volume of $121 billion. Bitcoin’s market share stood at 58.1%.

Meanwhile, a number is quietly circulating in institutional circles: BlackRock’s IBIT spot ETF has quietly surpassed 806,700 BTC in holdings, equivalent to approximately $63.7 billion—a record for this ETF. Ethereum spot ETFs have recorded net inflows for nine consecutive trading days. Over the past week, U.S. spot Bitcoin ETFs have posted daily net inflows exceeding $200 million for five consecutive days.

Strategy (formerly MicroStrategy) purchased 34,164 BTC for $2.54 billion on April 20, marking its largest single purchase since the end of 2024.

The underlying logic of market sentiment is undergoing a subtle shift: as the Iran conflict disrupts physical supply chains and gold weakens amid declining inflation expectations, capital is reassessing Bitcoin’s pricing rationale as "digital hard money." BlackRock is answering with real purchases.

On April 22, Trump announced an indefinite extension of the U.S.-Iran ceasefire, providing reassurance to the market; however, the Strait of Hormuz remains closed, and the supply gap has not been resolved:

U.S. stocks: The S&P 500 rose 1.05% to 7,137.90, and the Nasdaq gained 1.64% to 24,657.57, both reaching new all-time highs. Earnings season provided additional support, with GE Vernova surging 8% and Tesla reporting Q1 profits that exceeded expectations.

Oil/Gold: WTI crude remained within the $92–93/barrel range during trading, while Brent surpassed $101. Gold slightly rebounded to $4,758 but remains nearly 10% below pre-conflict levels. A ceasefire has not led to lower prices; as long as the strait remains closed, the premium will persist.

Cryptocurrency: Bitcoin rises to $78,568, a new 11-week high. BlackRock’s IBIT holdings reach a record 806,700 BTC, as institutions quietly shift their inflation hedge allocations from gold to Bitcoin.

The market is now focused on only one question: When will Iran submit the "unified proposal"?

If substantive progress is made in negotiations within the next two weeks, the Strait of Hormuz reopens, and oil prices decline, the stock market could see a catch-up rally, with tech and airline stocks benefiting first. If negotiations stall, a $100-per-barrel oil price could push inflation expectations to a level the Fed can no longer ignore, reigniting expectations of rate hikes—making today’s record highs the most expensive entry ticket ever.

At least today, one thing is certain: institutional capital has not stopped betting on the outcome of this war—it has simply shifted its direction, moving from selling U.S. stocks to buying Bitcoin.