Institutional Surge: Sovereign Wealth Funds Propel Bitcoin to $96,000 Amid Retail Exodus

Bitcoin’s impressive 13% rally in April 2025, peaking at $96,000, was primarily driven by institutional investors, including sovereign wealth funds, while retail investors scaled back their exposure through ETFs. According to John D’Agostino of Coinbase Institutional, this surge highlights a shifting dynamic in the cryptocurrency market, with de-dollarization trends, inflation hedging, and decoupling from tech-stock correlations playing pivotal roles. The rally saw Bitcoin climb from $76,500 to briefly touch $96,000 before stabilizing, underscoring the growing influence of large-scale institutional buyers in the crypto space.

Sovereign Wealth Funds Drove Bitcoin’s April Rally Amid Retail Retreat: Coinbase

Bitcoin’s 13% surge in April to $92,000 was fueled by institutional buyers including sovereign wealth funds, while retail investors reduced exposure through ETFs, according to Coinbase Institutional’s John D’Agostino. The rally saw BTC climb from $76,500 to briefly touch $96,000 before stabilizing.

De-dollarization trends, inflation hedging strategies, and decoupling from tech-stock correlations are driving institutional adoption. "Pools of capital that have been buying during April included sovereign wealth funds, large institutional, long-term holders," D’Agostino told CNBC’s Squawk Box.

The divergence between institutional accumulation and retail profit-taking highlights Bitcoin’s maturation as a macro asset. Coinbase’s report underscores how traditional finance players are now setting market direction rather than following retail sentiment.

Revolut Profits Surge Past £1B in 2024 Fueled by Crypto Trading Boom

Digital banking giant Revolut has crossed the £1 billion profit threshold for the first time in 2024, with cryptocurrency trading acting as a key growth driver. The London-based fintech saw its wealth division revenue skyrocket 298% to over £500 million, powered by surging demand for crypto, commodities, and trading products.

Bitcoin’s 120% price rally throughout 2024 created ideal conditions for Revolut’s expansion. The cryptocurrency bull run bookended two landmark events: January’s spot Bitcoin ETF approvals in the U.S. and the November election of pro-crypto candidate Donald Trump. Revolut’s customer base swelled beyond 50 million as retail investors flocked to crypto markets.

Bitcoin Breaks Above Short-Term Holder Realized Price for First Time Since February

Bitcoin surged past the $93,000 mark on April 23, closing at $93,715 after struggling to maintain momentum above $90,000. The move placed BTC 1.8% above the short-term holder (STH) realized price of $92,034—a threshold last crossed in late February.

The STH realized price serves as a critical sentiment gauge, reflecting the average acquisition cost of coins held for fewer than 155 days. When Bitcoin trades below this level, aggregate losses among active addresses often trigger reactive selling and thin bid depth. Conversely, reclaiming this level restores profitability to the cohort, reduces forced distribution, and frequently establishes the level as support during bullish phases.

February’s pullback highlighted the metric’s significance: BTC closed at $88,598 on Feb. 25, well below the STH cost basis. Today’s breakout suggests renewed conviction among traders most sensitive to price fluctuations.

Bitcoin-Linked Equities Show Breakout Potential as COIN and MSTR Test Key Levels

MicroStrategy (MSTR) and Coinbase (COIN) are emerging as bellwethers for crypto-linked equities, with both stocks showing technical setups suggesting potential upside breaks. These pioneers in Bitcoin-correlated trading now face decisive chart tests that could signal their next major moves.

Coinbase’s daily chart reveals a multi-year triangle pattern recently punctuated by a failed M-top breakout. The subsequent pullback precisely met the measured move target at the triangle’s lower boundary—a textbook technical reaction. Current price action now challenges descending resistance NEAR $280, a level that previously capped rallies in Q1 2024.

Bitcoin Deposits to Exchanges Hit 2016 Levels, Signaling Bullish Sentiment

Bitcoin deposits to exchanges have plummeted to their lowest levels since December 2016, a historically reliable indicator of bullish market sentiment. Axel Adler Jr., a prominent crypto analyst, highlights a decisive shift toward long-term holding strategies, with depositing addresses now operating far below historical averages.

The growing prevalence of the HODL mindset is tightening Bitcoin’s available supply. Fewer coins entering exchanges translates to reduced selling pressure—a fundamental driver of price appreciation. CryptoQuant data reveals a steady decline in exchange-bound Bitcoin transactions since 2022, reinforcing the thesis of strengthening investor conviction.