Bitcoin's price is currently declining after failing to sustain its position above $79,000 for the third time in eight sessions, thereby establishing this level as the defining range. On Tuesday morning, bitcoin was trading at $76,923, down by 2.4% over the past 24 hours, following its climb to $79,399 on Monday and subsequent reversal. Other major cryptocurrencies such as ether, solana, and BNB also experienced significant declines, with ether falling 3.7% to $2,290, solana dropping 3.9% to $84.10, and BNB declining 1.8% to $625.
The top 10 tokens all traded in the red over the past 24 hours, with the exception of TRON and DOGE. The surge in oil prices, with Brent crude rising 1% to above $109 a barrel, is attributed to the failed Iranian proposal to reopen the Strait of Hormuz, leading to an extension of the rally to a seventh day.
The MSCI Asia Pacific Index remained relatively unchanged, with Japanese stocks receiving support from the Bank of Japan's decision to maintain its policy unchanged. The yen strengthened 0.3% to around 159 per dollar. Market analysts have presented two contrasting views on bitcoin's price movement. Mike Novogratz of Galaxy Digital believes that the return of U.S.
retail investors, combined with institutional capital and limited supply, creates a foundation for further upside. In contrast, analysis firm CryptoQuant argues that bitcoin's push above $79,000 was primarily driven by a short squeeze in the derivatives market rather than sustained spot demand, leaving the market vulnerable to a reversal. The funding rates on perpetual futures across major exchanges remain negative, indicating that shorts are still paying longs to hold positions. Corporate accumulation of bitcoin continues, with Strategy buying $3.9 billion of bitcoin in April, the largest monthly accumulation in a year.
Japanese company Metaplanet announced a $50 million bond issuance to finance new bitcoin purchases, further expanding its corporate bitcoin treasury. The upcoming Federal Reserve policy decision and megacap tech earnings may serve as catalysts to push bitcoin's price past $80,000.