Bitcoin Breaks Above $93K Fueled by Massive ETF Demand

This was the highest single-day inflow since January, and it was likely driven by easing trade tensions. This surge also helped push Bitcoin’s price above $93,000 and reignited bullish forecasts. Some analysts even predict a potential rise to $200,000 by the end of 2025. Meanwhile, Tesla still seems confident in BTC’s long-term potential as the company held on to its Bitcoin during a rough first quarter of the year. 

Bitcoin ETF Inflows Surge

Investments in US spot Bitcoin exchange-traded funds (ETFs) recently rebounded very strongly, with inflows reaching levels that were last seen in January. According to data from Farside Investors, April 22 saw over $912 million in cumulative net inflows into Bitcoin ETFs. This was the largest single-day investment since Jan. 21. 

Bitcoin ETF flow (Source: Farside Investors)

This surge reflects a major turnaround in investor sentiment, which was previously dampened by concerns over global trade tensions. Luckily, market optimism was revived after comments from US President Donald Trump, who indicated that he might ease tariffs on Chinese imports. His softer stance appeared to alleviate fears of a prolonged trade standoff, and also fueled renewed confidence among institutional investors.

The resurgence in ETF activity also contributed to a noticeable rise in Bitcoin’s price, which climbed above $93,000 for the first time in seven weeks. Analysts believe that these developments, alongside increasing institutional interest, could accelerate Bitcoin’s historical four-year cycle and potentially push the cryptocurrency to new all-time highs before the end of 2025. 

BTC’s price action over the past 24 hours (Source: CoinMarketCap)

Another supporting factor is the weakening US dollar. The US Dollar Index (DXY) dropped by 9% since the beginning of the year, and reached a three-year low of 98.8. This trend enhanced Bitcoin’s status as a safe-haven asset.

Market analysts, including Bitget’s Ryan Lee, pointed out the rising correlation between Bitcoin and gold as investors look for hedges against economic uncertainty. Iliya Kalchev, an analyst at Nexo, believes that Bitcoin is no longer simply riding the coattails of the tech sector, but stepped up as a distinct barometer of macroeconomic sentiment. He said that the convergence of dollar weakness, record-high gold prices, and increased institutional buying is reshaping the market’s perception of what constitutes financial safety.

Nansen CEO Alex Svanevik agrees with this, and suggested that Bitcoin’s recent performance reflects a shift toward a more mature asset class, which is increasingly seen as a store of value similar to gold rather than a tech-sector proxy. However, despite its resilience, some analysts still warned that ongoing concerns about a potential economic recession could temper Bitcoin’s upward momentum. 

BitMEX co-founder Arthur Hayes described the current price level as a critical opportunity for investors, and suggested that it may be the “last chance” to buy Bitcoin under $100,000 before further gains are triggered.

Bitcoin Could Hit 200K in 2025

Bitcoin's price could even soar to $200,000 per coin by the end of 2025, driven by surging demand from institutional investors. This is according to recent research reports. 

Analysts at Standard Chartered and Intellectia AI pointed to the rapid adoption of ETFs and heightened interest from market participants looking to hedge against macroeconomic risks as key forces behind this bullish forecast. However, they also warned that this outlook is not guaranteed due to unforeseen regulatory or geopolitical events that could derail Bitcoin’s upward trajectory.

The optimism surrounding Bitcoin’s price potential has been boosted by its recent rally above $93,000 for the first time in weeks, which coincided with the highest daily net inflows into US spot Bitcoin ETFs since January. This momentum is being supported by ongoing demand from major exchanges like Coinbase and Kraken, as well as corporate entities adding Bitcoin to their treasuries. In fact, these entities now collectively hold close to $65 billion in BTC.

Bitcoin ETF flows (Source: CoinGlass)

Analysts also point to a broader shift in investor behavior. Gold and Bitcoin are increasingly seen as structural components in diversified portfolios as they offer protection against inflation and instability. However, this narrative is not without complications. While Bitcoin has often been likened to gold as a macroeconomic hedge, recent data suggests its correlation with gold weakened. Instead, Bitcoin revealed a closer alignment with equity markets.

On the other hand, some people argue that the influx of institutional capital through ETFs may paradoxically weaken Bitcoin’s appeal as a hedge, by tying its performance more closely to traditional financial instruments. Spencer Yang, a core contributor at Fractal Bitcoin, shared that real resilience in Bitcoin’s future lies beyond speculative interest. He believes that sustained growth will depend on active network usage, rather than simply being held as a store of value on institutional balance sheets.

Tesla Holds On To Bitcoin

Some companies are already aware of Bitcoin’s long-term potential. Tesla held on to its Bitcoin holdings through the first quarter of 2025, even as the company faced a big decline in both revenue and profit. 

The news came alongside CEO Elon Musk’s announcement that he plans to scale back his time spent working with the Trump administration as head of the Department of Government Efficiency, or DOGE, in order to focus more on Tesla. Musk’s commitment to reprioritize Tesla seems to have reassured investors, as Tesla’s stock rose 4.6% during regular trading on April 22 and climbed an additional 5.4% in after-hours trading to reach $250.80.

Tesla YTD stock price (Source: Google)

Despite the positive market reaction, Tesla’s Q1 financial results revealed some challenges. The company posted $19.34 billion in revenue, missing Wall Street expectations by almost 8% and falling 9.2% compared to the same quarter last year. Net income plummeted to $409 million, which was a steep 80.8% decline from the previous quarter and a 70.5% drop year-over-year. While these figures point to mounting pressure on Tesla’s operations, investors are still encouraged by Musk’s renewed focus on the company.

Tesla’s digital asset portfolio also experienced a shift in value, with its Bitcoin holdings dropping from $1.076 billion to $951 million in Q1. However, the recent market recovery pushed the value of Tesla’s 11,509 BTC back above $1.07 billion. The company’s Bitcoin stash remained untouched since June of 2022, and its valuation now reflects new Financial Accounting Standards Board rules that allow companies to report crypto assets at fair market value rather than only recording losses.

During Tesla’s April 22 earnings call, Musk explained that he will be dedicating a lot more of his time to Tesla in the coming months. He explained that much of the foundational work in launching DOGE has already been completed and he plans to stay involved only a day or two per week going forward to maintain oversight.

Tesla shares have struggled overall in 2025, and are down more than 37% year-to-date due to weakening sales, increased political distractions involving Musk, and economic uncertainty surrounding the Trump administration’s tariff policies. Nevertheless, Musk’s refreshed commitment to Tesla and the steadiness of its Bitcoin strategy provided a very welcome positive signal to investors.