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Bitcoin’s (BTC) bullish momentum continues to impress, with the cryptocurrency trading near $95,000 and fueling expectations of a swift retest of the coveted $100,000 mark. Over the past five days, BTC has surged by nearly 14%, demonstrating remarkable strength despite a brief pause in its upward trajectory.
This bullish outlook coincides with a stark revelation from Norges Bank Investment Management, the manager of Norway’s massive $1.8 trillion sovereign wealth fund. On Thursday, the fund reported a substantial $40 billion loss for the first quarter. The irony, as pointed out by Eli Nagar, CEO of Braiins Mining, lies in the fund’s rationale for avoiding Bitcoin, deeming it “too risky” due to its inherent volatility.
Norway’s sovereign wealth fund didn’t want to invest in bitcoin, saying it’s “too risky.”
— Eli Nagar (@EliNagarBrr) April 25, 2025
Now they have reported a loss on “safe” tech investments.
Irony level: $40 billion. 🤷♂️ pic.twitter.com/qcX10DEjT8
Instead of venturing into the cryptocurrency market, the Norwegian fund opted for investments in what it considered “safe” US tech equities. According to reports, a significant 55% of the fund’s holdings are concentrated in the United States, including giants like Nvidia, Alphabet, Meta, and Amazon. However, this seemingly secure strategy has evidently not shielded the fund from significant losses in the recent market environment.
Interestingly, despite its direct aversion to Bitcoin, the sovereign wealth fund does have indirect exposure to the cryptocurrency market through its investments in companies such as MicroStrategy, Coinbase, and Metaplanet. These firms have actively embraced Bitcoin as part of their corporate strategies.
Analyzing Bitcoin’s current price action, it hovers around $94,552 after a positive close on Friday. The four-hour chart indicates a breakout from a previous consolidation zone between $81,000 and $88,400, propelling BTC into a more significant three-month consolidation area ranging from $93,000 to $102,500. While the push suggests bullish control, some indicators hint at potential exhaustion.
The Relative Strength Index (RSI) has entered overbought territory and is displaying bearish divergence by forming lower highs while the price makes higher highs. A similar divergence is observed on the Awesome Oscillator (AO), often signaling potential corrections.
Also Read: Bitcoin, Ethereum, and XRP Face Key Resistance: Is the Rally Losing Steam?
However, Bitcoin might defy these bearish signals in the short term, potentially making another push to create a higher high while the RSI and AO continue their downward trend. This would further amplify the bearish divergence, potentially setting up a key reversal zone between $97,100 and $98,100, offering a potential shorting opportunity for traders. A volatility-driven spike to $100,000 remains a possibility, warranting caution in this range.
Looking beyond the immediate short-term, the overall outlook for Bitcoin remains bullish. A sustained move above the $98,000-$100,000 range could pave the way for further gains towards $102,000 and subsequently $108,000. As Bitcoin continues its ascent, the contrasting fortunes of the “safe” tech-heavy portfolio and the “risky” cryptocurrency serve as a compelling narrative in the evolving landscape of global finance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
