Bitcoin's price decline on Tuesday followed its inability to sustain levels above $79,000, with the cryptocurrency currently defining its range. The asset traded at $76,923, down 2.4% over 24 hours, after reaching $79,399 on Monday. Other major cryptocurrencies, including Ether, XRP, Solana, and BNB, also experienced significant declines. The rise in oil prices, driven by the failure of Iran's interim deal proposal to reopen the Strait of Hormuz, contributed to the market downturn.
Meanwhile, two distinct views on Bitcoin's future trajectory have emerged among market analysts, with some predicting further upside due to increased retail demand and institutional capital, while others warn of a potential reversal driven by a short squeeze in the derivatives market. The Federal Reserve's policy decision and major tech earnings reports are expected to be key catalysts for the market in the coming days.