The price of Bitcoin has dropped on Tuesday after failing to sustain its position above $79,000 for the third time in eight sessions, thus establishing this level as a defining factor in the current range. On Tuesday morning, Bitcoin was trading at $76,923, marking a 2.4% decline over the past 24 hours, after reaching $79,399 on Monday and then reversing its gains throughout the day. Other major cryptocurrencies such as Ether, XRP, Solana, and BNB also saw significant declines, with losses ranging from 1.8% to 3.9%. The only exceptions among the top 10 tokens were TRON and DOGE, which did not follow the downward trend.
The surge in Brent crude oil prices to above $109 a barrel, following the failure of Iran's interim proposal to reopen the Strait of Hormuz, has been a key factor contributing to the decline in cryptocurrency 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 are emerging among market analysts regarding the future trajectory of Bitcoin's price. Mike Novogratz of Galaxy Digital believes that the combination of retail demand, institutional capital, and limited supply will drive further growth, citing data that shows whales have accumulated over 40,000 BTC in the past two weeks.
In contrast, CryptoQuant's founder Ki Young-Ju argues that the recent 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 potential reversal. The funding rates on perpetual futures across major exchanges remain negative, indicating that shorts are still paying longs to hold positions, a pattern that historically precedes both squeezes and their unwinding. Despite these differing views, corporate accumulation of Bitcoin continues, with Strategy buying $3.9 billion worth of Bitcoin in April, its largest monthly accumulation in a year.
Japanese company Metaplanet has also announced a $50 million bond issuance to finance new Bitcoin purchases, further expanding its corporate Bitcoin treasury. The upcoming week is expected to bring significant catalysts, including the Federal Reserve's policy decision and the release of earnings reports from major tech companies, which could potentially push Bitcoin's price past $80,000.