The opening of the week was active in digital assets. Although Bitcoin rose above $79,000 three times in the last eight sessions, it failed to hold on to this level. Bitcoin, which was traded at $76,923 as of Tuesday morning, lost 2.4 percent in value in the last 24 hours. Users witnessed the market quickly change direction after a rapid pullback from $79,399.
Selling wave across the market
While Ethereum dropped by 3.7 percent to $2,290, XRP changed hands at $1.39 with a loss of 3.2 percent. Solana price decreased by 3.9 percent to $84.10. Binance Coin also lost 1.8 percent to $625. While almost all of the top 10 cryptocurrencies turned red in the last 24 hours, only TRON showed a limited rise.
This decline in the crypto market occurred in the shadow of various developments in global financial markets. While the barrel price of Brent oil increased by 1 percent and exceeded 109 dollars, the MSCI Asia Pacific index remained flat. Following the Bank of Japan’s interest rate decision, a limited strengthening of 0.3 percent stood out in the Japanese yen.
Two different perspectives on price movement
In market analysis, two different views came to the fore regarding Bitcoin’s latest rise. Galaxy Digital CEO Mike Novogratz stated in his note that individual investors in the USA have returned to the market. According to Novogratz, retail demand, institutional capital and limited supply create upside potential for Bitcoin.
According to Santiment data, whales have accumulated more than 40,000 Bitcoins in the last two weeks; The company emphasized that the emotional state turns from fear to fear of missing out (FOMO) in a very short time.
However, a different comment came from CryptoQuant. The founder of the company, Ki Young-Ju, explains in his post on Young-Ju pointed out that if such a rise is not supported by sufficient demand, a sharp correction may be seen in the market.
Financing rates in futures markets are still negative over the seven-day period. According to Coinglass data, this rate, which is at -0.13 percent, means that short positions pay for long positions. Historically, this pattern is seen before both bullish and rapid price reversals.
Institutions turned to new purchases
Bitcoin purchases by institutional investors continue unabated. According to figures quoted by Bloomberg, the company named Strategy collected $3.9 billion worth of Bitcoin in April, and this amount was the company’s highest monthly purchase in the last year.
Japan-based technology company Metaplanet announced on Tuesday that it issued a $50 million bond for a new Bitcoin investment. Metaplanet, which has recently continued to grow its Bitcoin reserve through yen-denominated borrowing, is thus on its way to having one of the largest corporate Bitcoin portfolios outside the USA. The company operates in the field of fintech and digital assets and has recently attracted attention with its Bitcoin accumulation strategy.
Two important developments that may have an impact on the crypto market are expected during the week. The US Federal Reserve will announce its own interest rate decision on Wednesday. In addition, the balance sheets to be announced by technology giants such as Alphabet, Microsoft, Amazon and Meta on Wednesday, and by Apple on Thursday, represent approximately a quarter of the total market value in the S&P 500.
Experts state that interest rate cuts or stronger financial results than expected from major technology stocks could push Bitcoin above $80,000. If such a development does not occur, it seems possible that the rejection at $79,000 will determine the upper band of the range and a horizontal course will continue in the short term instead of an upward break.
