Currently trading at $77,090.75, Bitcoin may experience a setback despite its slight increase. The cryptocurrency has seen less than a 0.5% gain since midnight UTC, and any significant move towards $80,000 is likely to encounter resistance. According to Luke Deans, a senior research associate at Bitwise, short-term holders have a cost basis around $80,000, which could prompt them to realize profits and sell, thereby limiting any potential advance.
The release of the US March PCE inflation report, coupled with soaring oil prices and reduced traffic through the Strait of Hormuz, may further exacerbate the situation. The Federal Reserve's decision to maintain the federal funds rate, accompanied by four dissenting votes, has also contributed to market uncertainty. Deans notes that altcoins remain closely tied to Bitcoin, with a high correlation and beta percentiles of 97% and 99%, indicating that tokens may mirror Bitcoin's movements. He also observes that beneath the surface, conditions are forming that typically precede increased volatility, characterized by subdued liquidity and a lack of directional conviction, suggesting that price movements may be necessary to unlock new liquidity.