The price of Bitcoin has slipped on Tuesday after it failed to maintain its position above $79,000 for the third time in eight sessions, thus establishing this level as the defining range. On Tuesday morning, Bitcoin traded at $76,923, marking a 2.4% decrease over 24 hours, following its climb to $79,399 on Monday and subsequent reversal. Other major cryptocurrencies, including Ether, XRP, Solana, and BNB, have also experienced declines, with Ether falling 3.7% to $2,290, XRP dropping 3.2% to $1.39, Solana slipping 3.9% to $84.10, and BNB declining 1.8% to $625.
The only exceptions among the top 10 tokens were TRON and DOGE. The surge in Brent crude oil prices to above $109 per barrel, driven by the failure of Iran's proposal to reopen the Strait of Hormuz, has contributed to the decline in cryptocurrency prices. The MSCI Asia Pacific Index remained relatively stable, supported by the Bank of Japan's decision to maintain its policy unchanged, which led to a 0.3% strengthening of the yen to around 159 per dollar. Market analysts have presented two contrasting views on the Bitcoin market.
According to Mike Novogratz of Galaxy Digital, the return of U.S. retail investors to the market, combined with institutional capital and limited supply, creates a foundation for further upside. Data from Santiment shows that whales have accumulated over 40,000 BTC in the past two weeks, and the firm has noted a sharp shift in sentiment from fear to fear of missing out.
In contrast, CryptoQuant's Ki Young-Ju argues that Bitcoin's push above $79,000 was primarily driven by a short squeeze in the derivatives market rather than sustained spot demand, leaving the market vulnerable to a reversal once the squeeze exhausts. Funding rates on perpetual futures across major exchanges remain negative, indicating that shorts are still paying longs to hold positions, a pattern that historically precedes both squeezes and the unwinding of squeezes. However, these two views are not mutually exclusive, as spot demand from retail and institutions can return at the same time as the rally toward $79,000 was front-loaded by short covering. The key test is whether the next attempt at the level brings fresh spot bids or runs out of shorts to squeeze.
Corporate accumulation of Bitcoin continues, with Strategy buying $3.9 billion of Bitcoin in April, the firm's largest monthly accumulation in a year. Japanese company Metaplanet has also announced a $50 million bond issuance to finance new Bitcoin purchases, adding to its existing corporate Bitcoin treasury. The upcoming week's catalysts include the Federal Reserve's policy decision on Wednesday, with traders pricing in a higher likelihood of a rate cut, and megacap tech earnings from major companies, which could potentially push Bitcoin past $80,000.