The price of Bitcoin has fallen on Tuesday, unable to sustain its position above $79,000, marking a defining level for the range. The cryptocurrency was trading at $76,923 on Tuesday morning, down from $79,399 the previous day. Other major cryptocurrencies, including Ether, XRP, Solana, and BNB, also experienced significant declines.
The surge in oil prices, which rose 1% to over $109 a barrel, has been driven by the failure of Iran's proposal to reopen the Strait of Hormuz. The MSCI Asia Pacific Index remained relatively stable, with Japanese stocks supported by the Bank of Japan's decision to maintain its policy. Two contrasting views have emerged among market analysts regarding the future of Bitcoin.
Mike Novogratz of Galaxy Digital believes that the combination of retail demand, institutional capital, and limited supply will drive further growth, citing the accumulation of over 40,000 BTC by whales in the past two weeks. In contrast, Ki Young-Ju of CryptoQuant argues that the recent push above $79,000 was primarily driven by a short squeeze in the derivatives market, leaving the market vulnerable to a reversal. 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 in April, the largest monthly accumulation in a year.
The Federal Reserve's policy decision on Wednesday and the release of earnings reports from major tech companies may serve as catalysts for Bitcoin's future price movement.