Bitcoin Whales and ETF Inflows Signal a Potential Rally

Since mid-April, Bitcoin has seen a surge of quiet but powerful buying activity. Billions have flowed into Bitcoin ETFs, while large holders — known as whales — have been steadily accumulating BTC.

The price hasn’t reacted dramatically yet, but the market may be setting the stage for a breakout.

Bitcoin ETFs have seen over $5.13 billion in net inflows since April 16. A bulk of the demand came from BlackRock’s iShares Bitcoin Trust, which posted an addition of $4.7 billion in just a few weeks.

That’s serious demand — and it’s coming fast.

However, the flow isn’t all one-way. On May 6, Bitcoin ETFs saw a combined outflow of $85.7 million, suggesting some short-term caution.

Bernstein Predicts $330 Billion Corporate Bitcoin Allocation in Next 5 Years

These inflows come just ahead of the next Federal Open Market Committee (FOMC) meeting. According to Polymarket data, there’s a 98% chance the Fed holds rates steady at 4.50%.

If confirmed, it would mark the third straight meeting without a hike — a potentially bullish backdrop for Bitcoin. With inflation cooling and rates on pause, risk assets like BTC may find room to move higher.

These observations align with predictions from Bernstein analysts, who foresee corporations allocating $330 billion in Bitcoin over the next five years.

"Our analysis suggests that, driven largely by allocators' pursuit of "new" sources of return, corporations will allocate an additional $330 billion in Bitcoin over the next 5 years," Bernstein stated in a note.

"This incremental allocation will bring the total corporate Bitcoin holdings to $440 billion by 2028, nearly double the current level."

Segal stated that this prediction is based on an analysis of the motivations and behaviors of allocators, considering factors such as macroeconomic trends, yield differentials, and the varying investing styles of different institutions.

"We believe that allocators are actively searching for uncrowded opportunities and are willing to move quickly when they identify them," he added.

"This urgency is evident in the rapid pace at which corporations have been adding Bitcoin to their portfolios in recent years."

"The large-cap technology sector has already begun allocating to Bitcoin, with firms like Apple, Microsoft, and Alphabet investing a portion of their cash reserves in the cryptocurrency.

"We expect this trend to continue and broaden to include companies in other sectors as allocators diversify their portfolios and seek out new sources of return."

This prediction from Bernstein provides insight into the potential trajectory of corporate cryptocurrency investments in the coming years, highlighting the role of allocators' motivations and macroeconomic trends in shaping this domain.