Bitcoin Bulls Face Hurdles in Quest to Surpass $80,000

Following a brief surge above $79,000, Bitcoin has retreated to $76,500, stalling its rally from the late-March lows below $65,000. Recent economic data may undermine the case for a rapid recovery. The University of Michigan's Consumer Sentiment Index has plummeted to an all-time low of 49.8, primarily due to inflation concerns linked to the Iran conflict. Furthermore, one-year inflation expectations have jumped to 4.8% in April, up from 3.8% the previous month, while long-term expectations have risen to 3.5%, the highest since October 2025. This sharp increase could limit the Federal Reserve's ability to signal interest rate cuts or liquidity easing, potentially capping gains in BTC and other risk assets. The Fed is expected to maintain its benchmark interest rate between 3.5% and 3.75% this Wednesday. Meanwhile, traders are also anticipating a potential Bank of Japan rate increase in June. In the crypto market, sustained ETF inflows are crucial for supporting spot BTC prices. Coordinated industry efforts have helped DeFi tokens hold up better than the broader market, with the CoinDesk DeFi Select Index gaining 0.5% over 24 hours. Bitcoin's hourly price movements indicate a potential exhaustion of the uptrend, with prices trading below their 50- and 200-hour averages, suggesting scope for a deeper price pullback.