By Gordon Gottsegen
Large institutions are warming up to bitcoin again, which could give the rally more steam
Bitcoin broke above $79,000 on Wednesday
As geopolitical tensions over Iran start to ease, investors are reviving their appetite for risky assets. That's given stocks a boost in April, but it has also driven investors to an asset that has underperformed for much of 2026 - bitcoin.
Bitcoin (BTCUSD) traded above $79,000 on Wednesday, its highest intraday level since Feb. 2. While that's still considerably lower than the crypto's all-time high of $126,272.76, it reflects a solid rebound off of its 2026 lows. Bitcoin has jumped 21.6% since its intraday low on March 30, according to Dow Jones Market Data.
Simon-Peter Massabni, head of business development at XS.com, said that capital has flowed into bitcoin through multiple channels, which makes it less likely that bitcoin sees a sharp reversal like in previous months, and more likely that the rally builds momentum.
&#34;I believe the return of liquidity is the most significant development since the cryptocurrency-market meltdown of Oct. 10. Funds continue to flow into bitcoin spot funds, bitcoin-hoarding companies have accelerated their purchases and on-balance volume is growing,&#34; Massabni said.
He noted that bitcoin ETFs IBIT GBTC have seen six consecutive days of net inflows. He said that a over a quarter of a billion dollars flowed into bitcoin ETFs in the week ending Tuesday, and almost $1 billion flowed in the week before.
On top of that, Massabni noted that bitcoin treasury companies have collectively purchased around 60,000 bitcoins over the past week. Strategy Inc. (MSTR), perhaps the most well-known bitcoin treasury company, has purchased nearly 53,000 bitcoins in April alone.
Read: Why Strategy's stock is outperforming bitcoin these days
These institutional inflows into bitcoin are important, because shrinking institutional demand is what accelerated the selloff late last year.
Bitcoin may be down year to date, but it has held up well since the onset of the Iran conflict.
&#34;Since 2020, we've seen continued evidence that more investors are viewing bitcoin as a store of value during periods of geopolitical stress. For example, in the 60 days that followed the 2020 COVID outbreak, Russia's invasion of Ukraine in 2022, and President Trump's 'liberation day' tariffs last year, bitcoin significantly outperformed both the S&amp;P 500 and gold,&#34; Gerry O'Shea, head of global market insights at Hashdex, told MarketWatch.
In addition, bitcoin also moved higher as equities bounced in April. By avoiding the worst of the selloff and rebounding from the de-escalation rally, Massabni said that bitcoin could have room to rise further should a more definitive end to the Iran war come into focus.
&#34;Bitcoin's current ascent persists despite heightened volatility in the Middle East, exacerbated by the administration's shifting diplomatic posture. Should a definitive cease-fire materialize, it would likely serve as a powerful catalyst for bitcoin's liquidity profile, potentially accelerating a return to previous record highs,&#34; he said.
Also read: Investors rediscover a taste for extremely speculative stocks as market rips higher in April
-Gordon Gottsegen
This content was created by MarketWatch, which is operated by Dow Jones &amp; Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
04-22-26 1737ET

GBTC

BITF

As geopolitical tensions ease, investor interest in bitcoin is rising, with the cryptocurrency trading above $79,000, its highest since February. Institutional inflows into bitcoin are increasing, with significant purchases from bitcoin treasury companies and ETFs. Experts believe that a definitive cease-fire in Iran could further boost bitcoin's liquidity and potentially drive it past $80,000. Bitcoin has shown resilience during geopolitical stress, outperforming traditional assets like the S&P 500 and gold in past crises.

- Large institutions are increasingly investing in bitcoin, which recently surpassed $79,000, its highest level since February.  
- Institutional inflows are crucial as they indicate a rebound from previous selloffs, with notable capital flowing into bitcoin ETFs and treasury companies.  
- Analysts suggest that if geopolitical tensions, particularly regarding Iran, stabilize, bitcoin could continue to rise, possibly reaching previous all-time highs.

Dow Jones

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Leverage Shares 2X Long COIN Daily ETF

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ARK 21Shares Bitcoin ETF

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MicroStrategy Pref Shares MSTR 10.0 Perp

Microstrategy Inc Pref Shares STRC 9.0 Perp

MicroStrategy Pref Shares MSTR 8.0 Perp

The Iran cease-fire has boosted investors' appetite for bitcoin. Here's why it could break past $80,000 soon.