The week opened with high volatility in digital assets, as BTC climbed above the $79,000 mark three times in the last eight sessions but was unable to sustain gains at this level. As of Tuesday morning, BTC was trading at $76,923, reflecting a 2.4 percent decline in the past 24 hours. After a swift reversal from the $79,399 peak, investors witnessed a prompt shift in market sentiment.
Broad-based selloff across major cryptocurrencies
ETH slid 3.7 percent to $2,290, while XRP lost 3.2 percent to change hands at $1.39. Solana’s price dropped by 3.9 percent to $84.10, and Binance Coin fell 1.8 percent to $625. Among the top 10 cryptocurrencies, nearly all recorded losses in the last 24 hours, with TRON standing as the sole exception, posting limited gains.
The downturn across crypto markets unfolded against a backdrop of varied developments in global finance. Brent crude oil rose 1 percent, pushing past $109 per barrel, while the MSCI Asia Pacific Index remained flat. The Japanese yen saw a modest 0.3 percent strengthening following the Bank of Japan’s rate decision.
Divergent views on BTC price movement
Analysts are split over BTC’s recent price actions. Mike Novogratz, CEO of Galaxy Digital, noted in a published memo that retail investors in the US are returning to the market. According to Novogratz, a combination of retail demand, institutional capital and a limited supply is creating upward potential for BTC.
As Santiment reports, whales accumulated more than 40,000 BTC in the last two weeks, highlighting how market sentiment has pivoted from fear to FOMO in a very short period.
By contrast, a different interpretation came from CryptoQuant. Founder Ki Young-Ju explained via X that BTC’s surges above $79,000 primarily stemmed from the closing of short positions in derivatives, not spot market demand. Young-Ju cautioned that without strong follow-through buying, such rallies could be vulnerable to sharp corrections.
Financing rates on Bitcoin’s derivatives markets remain negative over the past seven days. According to Coinglass, the funding rate currently sits at -0.13 percent, which indicates shorts are paying longs. Historically, this pattern has often preceded both price surges and rapid reversals.
Institutions continue accumulating BTC
Institutional appetite for BTC remains undiminished. According to Bloomberg, a firm named Strategy acquired $3.9 billion worth of BTC in April, marking its largest monthly purchase in the past year.
Japan-based technology company Metaplanet announced on Tuesday the issuance of $50 million in bonds to fund fresh BTC investments. By raising funds in yen and steadily increasing its BTC reserves, Metaplanet is positioning itself among the largest institutional holders of BTC outside the US. The fintech and digital asset firm has drawn attention with its ongoing BTC accumulation strategy.
Two key market-moving events are set to shape crypto prices this week. The US Federal Reserve is slated to announce its rate decision on Wednesday. Meanwhile, quarterly results from tech giants Alphabet, Microsoft, Amazon, and Meta are due Wednesday, with Apple’s report expected Thursday—these companies collectively represent about a quarter of the S&P 500’s total market cap.
Experts note that either a US rate cut or stronger-than-expected tech earnings could propel BTC above $80,000. In the absence of such catalysts, rejection at $79,000 may set the upper end of the current range, making sideways trading more likely in the short term.
