QCP: Focus on Bitcoin Key Resistance Level of $88,800, Institutional Confidence Showing Initial Signs of Recovery

April 21st. QCP disclosed its daily market observation, indicating that Bitcoin staged a "comeback" during the Easter period. It surged to above $87,000 during the Asian morning session and quickly reversed the sell-off triggered by former U.S. President Trump's unexpected "Liberation Day" announcement on April 2nd. This rally retrieved most of the decline. Although the cryptocurrency market is no stranger to rebounds with low liquidity during long weekends, this surge stands in sharp contrast to last December's calm "Santa Claus rally." This time, Bitcoin's performance was remarkable. Bitcoin wasn't the only one shining. Gold also surged to a historical high due to escalating trade tensions and a weakening U.S. dollar. Last week, the stock market closed lower, continuing its downward trend in April, bringing attention back to Bitcoin as a safe haven asset or an inflation hedge tool. If this trend persists, it may provide a new impetus for institutional investors to allocate to Bitcoin. In fact, there are already initial signs of renewed institutional confidence. Last week, net inflows into spot Bitcoin ETFs turned positive, with a net inflow of $13.4 million, which was in sharp contrast to the net outflow of $708 million in the previous week. In the options market, position allocation has become more balanced. Risk reversal indicators across different maturities are stabilizing and deviating from the short-term bearish skew seen in the past few weeks. So, is today's simultaneous rise in Bitcoin and gold just holiday-driven commotion, or is it a significant transformation of Bitcoin as a safe haven asset? The latter would indicate a substantial change in traditional finance's view of Bitcoin. As Europe is still on holiday, market confirmation may take several trading days. The correlation between Bitcoin, gold, and the stock market is worthy of close attention. Currently, the focus is on the key resistance level of $88,800. Until a clear breakthrough above this level, it is advisable to be cautious in drawing definite conclusions.