Bitcoin Gains Bullish Momentum as $292 Billion Risk-On Rotation Hits Wall Street

Wall Street’s $292 Billion Risk-On Rotation Fuels Bitcoin’s Bullish Setup

Global equity funds experienced a historic surge in inflows over four weeks ending April 22, totaling $118 billion, while money-market funds recorded a record $173.24 billion outflow in the week through April 15—the largest single-week exit from cash since at least September 2018. Combined, these movements create a $292 billion risk-on signal, reshaping market dynamics and positioning Bitcoin as a primary beneficiary.

Bitcoin’s Rising Correlation with Equities Strengthens Its Appeal

According to Coinbase and Glassnode’s Q2 Institutional Outlook, Bitcoin’s daily return correlation with the S&P 500 reached 0.58 in Q4 2025, while its relationship with gold remained negligible. This suggests that as capital flows toward risk assets, Bitcoin is increasingly behaving like a traditional risk-on asset class, drawing attention from institutional and retail investors alike.

Global equity funds attracted $48.72 billion alone in the week through April 22, while money-market funds shed a record $173.24 billion the prior week. This stark contrast underscores a decisive shift away from cash and into higher-risk investments, with Bitcoin positioned as a key beneficiary.

Institutional and Retail Investors Remain Optimistic on Bitcoin’s Valuation

Coinbase’s survey of 91 global investors—including 29 institutions and 62 non-institutions—conducted between March 16 and April 7, 2026, revealed strong bullish sentiment:

• 75% of institutional respondents view Bitcoin as undervalued, while only 7% see it as overvalued.
• 61% of non-institutional crypto investors also consider Bitcoin undervalued, with just 11% viewing it as overvalued.

These figures indicate that even at current levels, Bitcoin retains significant upside potential in the eyes of both large-scale institutional players and broader crypto investors. The lack of widespread euphoria suggests the market has not yet reached a speculative peak.

On-Chain Data Reinforces Bitcoin’s Accumulation Phase

The on-chain landscape further supports Bitcoin’s bullish setup:

• BTC supply moved in the last three months fell by 37% during Q1, while supply dormant for over a year rose by 1%—signaling long-term holders are accumulating.
• The Puell Multiple dropped to 0.7 in Q1, historically a zone associated with accumulation periods as miner revenue ran 30% below its one-year baseline.
• Long-term holder balances increased, while exchange balances declined, and stablecoin supply grew from $308 billion to $320 billion, indicating dry powder remains within the crypto ecosystem.
• Options open interest grew by 2.4%, and perpetual futures open interest recovered by 8.6%, reflecting a market that has absorbed deleveraging and is rebuilding cautiously.

Key Metrics Highlighting Bitcoin’s Bullish Sentiment

"Capital rotating into risk meets an asset that its most sophisticated holders still consider cheap, held by a market yet to rewire itself for euphoria."

Conclusion: Bitcoin Poised for Further Gains Amid Macro Rotation

The $292 billion risk-on rotation from Wall Street, combined with Bitcoin’s strengthening correlation to equities and persistent undervaluation sentiment, paints a compelling bullish case. With on-chain data signaling accumulation and institutional optimism remaining high, Bitcoin appears well-positioned for continued upside as capital continues to flow into risk assets.