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

After reaching highs above $79,000, Bitcoin has retreated to $76,500, putting the brakes on its rally from the late-March lows of under $65,000. However, recent economic indicators suggest that a swift rebound may not be on the horizon. The University of Michigan's Survey of Consumers revealed a significant decline in consumer sentiment to an all-time low of 49.8, primarily driven by inflationary concerns linked to the Iran conflict. Furthermore, inflation expectations have spiked, with the one-year gauge jumping to 4.8% in April from 3.8% the previous month. Long-term expectations have also risen to 3.5%, the highest level since October 2025. This surge in inflation expectations could limit the Federal Reserve's ability to signal interest-rate cuts or liquidity easing, potentially capping gains in Bitcoin and other risk assets. Analysts warn that the sharp rise in long-term expectations is particularly concerning for the Federal Reserve, as it may indicate that inflation psychology is becoming unanchored. With the Fed expected to maintain its benchmark interest rate and potential rate hikes on the horizon, traders are exercising caution. The crypto market is also keeping a close eye on sustained ETF inflows, which are crucial for supporting spot Bitcoin prices. Meanwhile, coordinated efforts to contain the fallout from the KelpDAO exploit have helped DeFi tokens hold up relatively well. The Bitcoin price has broken out of an ascending trendline, trading at a discount to its 50- and 200-hour averages, indicating potential for a deeper price pullback.