Spot Flows and Institutional Interest Fuel Bitcoin’s Bullish Momentum

One such metric, the Spot Cumulative Volume Delta (CVD), tracks the net taker-side buy or sell pressure in spot order books. By analyzing this metric across major trading platforms, we can assess the strength and direction of spot market activity.

The chart below highlights the spot CVD for Binance and Coinbase. Since mid-April, Coinbase has seen consistent net buying, with CVD peaking at +$45M per day.

This increase in buying pressure coincided with the market’s upward movement, contributing to the rally toward $104k. In contrast, Binance’s markets have shifted from intense net selling pressure of -$71M per day in mid-March to a much milder -$9M per day today, indicating a reduction in sell-side pressure.

Spot Demand and On-Chain Signals Align

The alignment between on-chain accumulation and off-chain spot demand strengthens the case that the rally to $104k was driven by genuine dip-buying activity. This consistency in buyer strength across both on-chain and off-chain metrics suggests that the rally is well-supported. Maintaining this momentum could sustain a bullish outlook in the mid-term.

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Institutional Interest Remains Strong

BTC’s appeal to traditional investors has grown, particularly with the introduction of spot ETFs. Tracking the flows of these products offers a valuable perspective on institutional sentiment and demand. On April 25, the weekly average net inflow to ETF wallets peaked at $389M per day, coinciding with a surge in spot-driven buying and supporting the rally toward $104k.

Since then, ETF inflows have cooled to around $58M per day, but they still indicate robust institutional interest.

Implications for Bitcoin’s Future

These ETF flows suggest that institutional interest in Bitcoin remains strong, with inflows comparable to those seen during previous market rallies in 2024. As institutional participation continues to play a key role in the market, Bitcoin’s outlook remains positive as long as the demand from both retail and institutional investors persists.

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