The price of Bitcoin has fallen on Tuesday after struggling to maintain its position above $79,000 for the third time in eight sessions, a level that now defines the range. On Tuesday morning, Bitcoin traded at $76,923, down 2.4% over 24 hours, following a climb to $79,399 on Monday and a subsequent reversal. Other major cryptocurrencies, including Ether, XRP, Solana, and BNB, also experienced significant declines, with Ether falling 3.7% to $2,290, XRP slipping 3.2% to $1.39, Solana dropping 3.9% to $84.10, and BNB declining 1.8% to $625. The top 10 tokens traded in the red over the past 24 hours, with the exception of TRON and DOGE.
Meanwhile, Brent crude rose 1% to above $109 a barrel, extending its rally for the seventh day, after Iran's proposal to reopen the Strait of Hormuz failed to advance over the weekend. The MSCI Asia Pacific Index remained largely unchanged, with Japanese stocks supported by the Bank of Japan's decision to maintain its policy unchanged. Two contrasting views are emerging among market analysts regarding Bitcoin's outlook. Mike Novogratz of Galaxy Digital believes that the combination of retail demand, institutional capital, and limited supply creates a foundation for further upside, citing data that shows whales have accumulated over 40,000 BTC in the past two weeks.
In contrast, analysis firm CryptoQuant argues that Bitcoin's push above $79,000 was driven primarily 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. Despite these differing views, 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 also announced a $50 million bond issuance to finance new Bitcoin purchases, adding to its existing Bitcoin treasury. The week's catalysts are expected to arrive on Wednesday and Thursday, with the Federal Reserve announcing its policy decision and megacap tech earnings from major companies, which could potentially push Bitcoin past $80,000.