Bitcoin Smashes Through $98K—So Why Are Traders Still Side-Eyeing the Rally?

Bitcoin just bulldozed past $98,000—another all-time high in its relentless climb. Yet the champagne corks aren’t popping on Wall Street. What’s holding back the confetti?

Institutional FOMO meets old-school skepticism. Hedge funds are loading up on BTC futures, but retail investors? They’re watching like it’s a 2021 re-run—complete with ‘this time it’s different’ memes.

The real kicker? Traditional finance bros still can’t decide if crypto’s the future or a high-tech Ponzi scheme. Meanwhile, Bitcoin’s market cap flirts with $2 trillion while gold bugs sob into their vaults.

Cynical take: Maybe Wall Street’s just salty they missed the boat… again.

A bull run clouded by doubt

Recent data revealed a striking divergence between Bitcoin’s price and prevailing sentiment on X (formerly Twitter) and news platforms.

Even with BTC trading confidently above $98K, the 7-day average sentiment remained firmly negative – a pattern historically associated with local bottoms and contrarian buying opportunities.

Source: Alphractal

This persistent disbelief suggests that the market is psychologically lagging behind price action.

While such sentiment drops have previously preceded bullish reversals, it’s worth remembering the cautionary tale of 2022, where extended negativity coincided with a prolonged bear phase.

The institutional engines behind BTC

A sharp shift is visible on the ETF Flow chart: after weeks of consistent outflows, April ushered in a regime of substantial spot ETF inflows.

This renewed institutional interest, primarily led by giants like BlackRock and Fidelity, appears to have reignited Bitcoin’s upward momentum, pushing it past the $98K mark.

Source: Glassnode

Unlike the volatile flows of earlier months, this phase shows steady daily net inflows, signaling strong long-term conviction.

Institutional confidence may be the key force behind the surge, even as retail sentiment remains cautious.

What could go wrong?

While ETF inflows signal optimism, history reminds investors to stay cautious.

In 2022, bullish sentiment, driven by institutional products and macro trends, collapsed due to liquidity shocks and excess leverage.

A sudden shift in risk appetite or regulatory pressures could trigger rapid outflows, reversing recent gains.

Although ETFs offer transparency, they don’t shield Bitcoin from market volatility. If inflows slow or turn to redemptions, Bitcoin could face sell-offs similar to past cycles.