Crypto Dan2026-05-04

Bitcoin – Rebounding at the Average Cost Basis of Early ETF Buyers

The funds that flowed in during the early stages of Bitcoin spot ETF approval can largely be attributed to institutional investors rather than retail participants. The average cost basis of investors who entered the market following the ETF approval is now acting as a key support level for Bitcoin's current price, and we are seeing a rebound emerge from this zone. What stands out is that this cycle is structurally different from previous ones. While various data points suggest that a bottom has not yet been reached, the large-scale influx of institutional capital through spot ETFs is a variable that simply did not exist in past cycles. As a result, it is worth keeping open the possibility that the current downtrend may play out differently than what we have seen before, and positioning accordingly. In the near term, it will be important to monitor the depth and magnitude of any correction or pullback that follows once this rebound concludes. Accumulating in tranches during significant corrections may prove to be a sound strategy going forward.