The cryptocurrency market experienced a downturn on Tuesday, with Bitcoin's price falling after its inability to sustain a level above $79,000. The digital currency traded at $76,923, down 2.4% over 24 hours, following a rejection from $79,400 the previous day. Other major cryptocurrencies, including Ether, XRP, Solana, and BNB, also saw significant declines. Meanwhile, Brent crude oil prices rose to a three-week high, driven by the failure of Iran's proposal to reopen the Strait of Hormuz.
The surge in oil prices has been ongoing for seven days, with the White House maintaining its stance on the issue. In contrast, the MSCI Asia Pacific Index remained relatively stable, supported by the Bank of Japan's decision to keep its policy unchanged. The yen strengthened against the dollar, with a 0.3% increase. Market analysts are divided on the outlook for Bitcoin, with some citing the return of retail investors and institutional capital as a positive sign, while others warn that the recent push above $79,000 was driven by a short squeeze in the derivatives market rather than sustained demand.
Funding rates on perpetual futures 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 the cryptocurrency in April. Japanese company Metaplanet also announced a $50 million bond issuance to finance new Bitcoin purchases. The upcoming Federal Reserve policy decision and megacap tech earnings are expected to be major catalysts for the market in the coming days.