Bitcoin's price has been falling after failing to sustain above $79,000, with the cryptocurrency trading at $76,923 on Tuesday morning. This decline comes after Bitcoin climbed to $79,399 on Monday, only to reverse its gains throughout the day. Other major cryptocurrencies, including Ether, XRP, Solana, and BNB, also saw significant declines.
The surge in oil prices, driven by the ongoing tensions in the Strait of Hormuz, has contributed to the downturn in the cryptocurrency market. However, some analysts believe that the combination of retail demand, institutional capital, and limited supply could create a foundation for further upside in the market. Others argue that the recent rally was driven primarily by a short squeeze in the derivatives market, leaving the market vulnerable to a reversal. The Federal Reserve's policy decision and megacap tech earnings are expected to be major catalysts for the market in the coming days.