Bitcoin: Buying Pressure Vanishes at $78,000...Warning of Plunge Amid Inflation Crisis

▲ Iran, U.S., Bitcoin (BTC)/ChatGPT generated image

As Bitcoin (BTC) remains stuck at the $78,000 level, a macroeconomic headwind in the form of soaring oil prices is putting pressure on risk assets across the board, heightening investor anxiety.

According to CoinTelegraph, a cryptocurrency specialized media outlet, on April 24 (local time), Bitcoin is struggling to break through the $78,000 resistance level and continues its sideways trend. This is due to the sharp contraction in investor sentiment towards risk assets as rising international oil prices fuel inflation concerns. A surge in oil prices typically puts upward pressure on prices, which acts as a factor that lowers expectations for interest rate cuts by the U.S. Federal Reserve.

The fear of a risk asset squeeze is weighing on the market. Rising oil prices suggest the possibility of slowing the pace of price stabilization, thereby prolonging the Fed's tightening stance. This has led to a sustained strong dollar, absorbing liquidity from the cryptocurrency market, including Bitcoin. Investors are turning to a wait-and-see approach, monitoring changes in macroeconomic indicators rather than seeking further upward momentum.

Open interest figures remain high, but they are insufficient to drive a price rebound. Santiment's on-chain metrics show a slowdown in the movement of whale addresses. Retail investors are also increasing their cash holdings in preparation for increased volatility. With the buffer that protected the market weakening, prices could be significantly shaken even by minor negative news.

The $78,000 level serves as both a psychological resistance and a technical high point. To break through this, strong buying pressure is needed, but the current macroeconomic environment is not favorable. Supply chain instability and geopolitical risks are intertwined, leading to widespread uncertainty across the market. Experts predict that Bitcoin will remain in a narrow trading range in the short term.

The cryptocurrency market has now reached a stage where it reacts sensitively to macroeconomic indicators such as international oil prices and interest rates, beyond mere chart analysis. As the possibility of inflation reigniting emerges, Bitcoin's nature as a store of value and its nature as a risk asset are clashing. For the time being, changes in the macroeconomic environment are expected to be the key variable determining the market's direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*