Bitcoin's price has fallen to $76,502.26 on Tuesday after failing to sustain levels above $79,000 for the third time in eight sessions, establishing this level as a defining range. The cryptocurrency had reached $79,399 on Monday but reversed its gains throughout the day. Other major cryptocurrencies, including Ether, XRP, Solana, and BNB, also experienced declines, with the entire top 10 trading in the red over the past 24 hours, except for TRON and DOGE.
The surge in oil prices, with Brent crude rising 1% to above $109 a barrel, has been attributed to the failure of Iran's interim deal proposal to reopen the Strait of Hormuz. The MSCI Asia Pacific Index remained relatively unchanged, with Japanese stocks supported by the Bank of Japan's decision to maintain its policy unchanged. Two contrasting views have emerged among market analysts regarding the outlook for Bitcoin. Mike Novogratz of Galaxy Digital believes that the combination of retail demand, institutional capital, and limited supply creates a foundation for further upside, citing data that shows whales have accumulated over 40,000 BTC in the past two weeks.
In contrast, analysis firm CryptoQuant suggests that Bitcoin's push above $79,000 was driven primarily by a short squeeze in the derivatives market, leaving the market vulnerable to a reversal once the squeeze exhausts. Funding rates on perpetual futures remain negative, indicating that shorts are still paying longs to hold positions. Despite these differing views, corporate accumulation of Bitcoin continues, with Strategy buying $3.9 billion of Bitcoin in April, the largest monthly accumulation in a year. Japanese company Metaplanet has also announced a $50 million bond issuance to finance new Bitcoin purchases.
The upcoming Federal Reserve policy decision and megacap tech earnings may serve as catalysts for Bitcoin's price movement, potentially pushing it past $80,000.