The price of bitcoin has fallen on Tuesday, unable to maintain its position above $79,000, a level that is now crucial in defining the current trading range. The cryptocurrency was valued at $76,923 on Tuesday morning, marking a 2.4% decrease over the past day, following a climb to $79,399 on Monday.
Other major cryptocurrencies such as ether, solana, and BNB also experienced significant declines. Meanwhile, Brent crude oil has risen by 1% to over $109 per barrel, extending its rally to a seventh consecutive day, following the failure of Iran's proposal to reopen the Strait of Hormuz.
The ongoing geopolitical tensions have led to a surge in oil prices. The MSCI Asia Pacific Index remained relatively stable, with Japanese stocks receiving support from the Bank of Japan's decision to maintain its current policy.
Two contrasting views have emerged among market analysts regarding the future trajectory of bitcoin. On one hand, Mike Novogratz of Galaxy Digital believes that the combination of retail demand, institutional capital, and limited supply will drive the price of bitcoin upward. On the other hand, CryptoQuant's founder Ki Young-Ju argues that the recent surge in bitcoin's price was primarily driven by a short squeeze in the derivatives market, 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 worth of bitcoin in April, the largest monthly accumulation in a year. Japanese company Metaplanet has also announced a $50 million bond issuance to finance new bitcoin purchases.
The upcoming Federal Reserve policy decision and the earnings reports from major tech companies are expected to be significant catalysts for the market.