Bitcoin price broke above $81,000, led by BlackRock’s IBIT, driving $530 million in inflows. Amid stabilization in the derivatives market, Bitcoin’s total market capitalization rose to $2.67 trillion.
Total market capitalization has risen above $2.67 trillion, with Bitcoin trading price breaking through $80,000 and briefly surpassing the $81,000 mark. This price movement, driven by increased demand for exchange-traded funds (ETFs), brings the leading cryptocurrency close to a key resistance level.
ETF fund inflows are returning as a key catalyst
The most obvious signal of a shift in short-term momentum comes from the ETF market. On May 4, net inflows into Bitcoin ETFs exceeded $530 million, primarily driven by BlackRock’s IBIT. This outcome confirms a strong start to May and marks a sharp reversal from the outflows seen in late April, helping to restore market risk appetite.
Similar, albeit more muted, dynamics are occurring on Ethereum. According to data from Farside Investors, Ethereum ETFs have seen $61 million in inflows. While investment across other networks is gradually expanding, institutional interest remains focused on the most liquid assets.
Altcoins are gaining momentum selectively.
Markets beyond Bitcoin have also shown signs of inertia, though without large-scale rotation. Solana has recorded modest inflows through an ETF structure, while XRP has attracted limited but sustained institutional interest.
However, the Altcoin Season Index remains below neutral levels, indicating that the market is still dominated by Bitcoin. This is further confirmed by Bitcoin’s relative strength compared to higher-risk assets, despite the higher volatility of certain altcoins.
Derivatives market cools down
As prices rose, the derivatives market also saw significant liquidations, with crypto liquidations reaching $370 million.According to Coinglass data, $223 million of this was from short positions.
Funding rates and open interest are stabilizing, indicating that speculative pressure is easing—a factor often preceding more sustainable upward trends.
Market sentiment: Neutral but constructive
Despite the price increase, the Fear & Greed Index remains in the neutral zone—this rare combination suggests the market has not yet become overheated. If institutional funds continue to flow in, this could create room for further gains.
The RSI indicator also remains balanced, confirming no extreme conditions in overbought or oversold areas.
Outlook: Dependent on capital flows and the macroeconomic environment
Short-term market movements appear to be increasingly dependent on ETF fund flows and macroeconomic signals.
The recovery of capital inflows is a key factor in maintaining current levels, especially for Bitcoin, which remains the primary risk indicator for the cryptocurrency industry.
Overall, the combination of institutional participation, improved liquidity, and lower leverage has created conditions for a sustained upward trend—although periods of consolidation may occur near key price levels.
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