Bitcoin, currently trading at $79,966.96, is experiencing a familiar pattern of being stuck just below the $80,000 mark, hindered by sellers despite indicators such as fresh stablecoin liquidity, ETF demand, and a risk-on equity market suggesting a potential breakout. The cryptocurrency briefly surpassed $79,000 during Asian trading hours before falling back to trade below $78,000. Over the past 24 hours, bitcoin has seen a 0.4% decline, with ether dropping 0.6%, XRP down 0.8%, and Solana's SOL experiencing a decline of over 1%.
Broader market benchmarks also faced pressure, with more than a 1% drop. According to FxPro's Chief Market Analyst Alex Kuptsikevich, the $80,000 level is acting as a near-term barrier due to concentrated sell orders. Despite this, Kuptsikevich believes the pullback is temporary and aligns with the broader uptrend that started in late March.
On-chain and ETF data support this view, with Binance recording a net inflow of roughly $3.4 billion in stablecoins this month. Institutional demand remains strong, with U.S.-listed spot bitcoin ETFs attracting $2.44 billion in investor money this month. However, security risks in DeFi continue to impact sentiment, with the SUI-based lending platform Scallop being exploited, resulting in the loss of approximately 150,000 SUI.
This adds to the growing list of attacks this month, including the Drift and KelpDAO exploits, with DeFi protocols losing an estimated $623 million to hacks in April alone. In traditional markets, WTI crude oil prices remain above $90 per barrel, with Brent above $100, posing a threat to the global economy with high inflation.