Bitcoin Bulls Face Hurdles in Quest to Surpass $80,000

After reaching above $79,000 earlier in the week, Bitcoin pulled back to $76,500, stalling its rally from the late-March lows below $65,000. However, recent economic data suggests that a swift return to form may be unlikely. The University of Michigan's Survey of Consumers revealed a sharp decline in consumer sentiment, with the index falling to an all-time low of 49.8, driven primarily by inflationary pressures related to the Iran conflict. Inflation expectations have also surged, with the one-year gauge rising to 4.8% in April from 3.8% the previous month, and long-term expectations increasing to 3.5%, the highest reading since October 2025. This rise in inflation expectations could limit the Federal Reserve's ability to signal interest-rate cuts or liquidity easing, as additional monetary easing may reinforce inflationary pressures, potentially capping gains in BTC and other risk assets. Analysts at Bitfinex noted that the long-term expectations move is the more critical data point for the Federal Reserve, as it is the variable the central bank watches closely when assessing whether inflation psychology is becoming unanchored. The Fed is expected to maintain its benchmark interest rate steady between 3.5% and 3.75% this Wednesday. Meanwhile, traders are pricing in a potential Bank of Japan rate increase in June, and sustained ETF inflows remain crucial to keeping spot BTC supported on dips. Coordinated industry efforts to contain the fallout from the KelpDAO exploit have helped DeFi tokens hold up better than the broader market, with the CoinDesk DeFi Select Index gaining 0.5% over 24 hours. The chart shows bitcoin's hourly price swings in candlestick format since late March, with prices trading at a discount to their 50- and 200-hour averages, pointing to uptrend exhaustion and scope for a deeper price pullback.