The value of Bitcoin, currently at $78,217.87, may experience a setback despite its slight increase. Having gained less than 0.5% since midnight UTC, the cryptocurrency is expected to face opposition as it approaches $80,000. 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 sell and realize profits, thereby limiting any potential price increase. Additionally, the release of the US March PCE inflation report, coupled with high oil prices and rising bond yields, may exert downward pressure on risk assets.
The recent decision by the Federal Reserve to maintain the federal funds rate, along with the significant number of dissenting voices, has also contributed to market uncertainty. Deans noted that altcoins remain closely tied to Bitcoin, with a high correlation and beta percentiles of 97% and 99%, respectively. This suggests that the price movements of altcoins may mirror those of Bitcoin. Furthermore, Deans observed that underlying conditions are ripe for increased volatility, characterized by subdued liquidity and a lack of directional conviction, which may necessitate price movements to unlock new liquidity.