The value of Bitcoin has dropped on Tuesday following its inability to sustain a price above $79,000, a level that is now establishing the upper limit of its current range. On Tuesday morning, the cryptocurrency was trading at $76,923, representing a 2.4% decline over the past 24 hours after reaching $79,399 on Monday. Other major cryptocurrencies, including Ether, XRP, Solana, and BNB, also experienced significant declines.
The surge in oil prices, which rose 1% to over $109 per barrel, has been attributed to the failure of Iran's proposal to reopen the Strait of Hormuz. The MSCI Asia Pacific Index remained relatively stable, with Japanese stocks receiving support from the Bank of Japan's decision to maintain its policy unchanged. Two distinct perspectives on the Bitcoin market are emerging among analysts. Mike Novogratz of Galaxy Digital believes that the combination of retail demand, institutional capital, and limited supply creates a solid foundation for further growth.
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 potential reversal. Despite these differing views, corporate accumulation of Bitcoin continues, with Strategy purchasing $3.9 billion worth of the cryptocurrency in April. The upcoming Federal Reserve policy decision and tech earnings reports from major companies may serve as catalysts for the Bitcoin price to break through the $80,000 threshold.