Bitcoin Stalls at $80K as Institutional Demand Fails to Boost Price

Bitcoin's recovery is facing pressure as it struggles to break through the $80,000 threshold. Despite institutional demand and increased holdings among large investors, the cryptocurrency has been unable to extend its gains.

Inflows into spot Bitcoin exchange-traded funds reached a record $314.37 million on Tuesday, marking the seventh consecutive session of positive flows. This surge in ETF inflows is a sign that institutional investors are increasingly interested in Bitcoin.

Whale activity has also picked up, with 12,778 transactions worth more than $1 million occurring over a seven-day period. The number of wallets containing between 10,000 and 1 million Bitcoin increased to 15.01% of total supply, indicating continued accumulation.

Eric Balchunas, senior ETF analyst at Bloomberg, noted that BlackRock had facilitated $5 billion worth of exchanges between its IBIT fund and Bitcoin held by investors. These exchanges allow tax liabilities to be deferred until the ETF shares are eventually sold.