Bitcoin, 'Tripped Up' by Inflation... Re-entering the $70,000 Era

▲ 비트코인(BTC)/챗gpt 생성 이미지

Bitcoin (BTC) has fallen into a downtrend, giving up the $77,000 mark, as it faces inflation fears due to surging international oil prices.

According to a report by crypto media outlet NewsBTC on April 29 (local time), Bitcoin fell below the psychological support level of $77,000 immediately after news broke that Brent crude prices surpassed $110 per barrel. This is a result of rapidly cooling investor sentiment towards risky assets as geopolitical tensions in the Middle East escalated into a threat of blocking the Strait of Hormuz, causing energy prices to skyrocket.

Rising oil prices are stimulating global inflation and acting as a decisive factor in dampening expectations for an interest rate cut by the U.S. Federal Reserve. The market is accelerating asset sales, concerned about the possibility of hawkish remarks from the Federal Reserve's interest rate decision scheduled for this week. As Bitcoin's price falls below $77,000, warnings are continuously emerging that it could further drop to the $75,000 and $72,000 levels in the short term.

Major altcoins such as Ethereum (ETH) and XRP also followed Bitcoin's downtrend, all showing red. In particular, Ethereum failed to break through the $2,400 resistance level and is struggling with weakness as selling volume poured in. As billions of dollars in market capitalization evaporated from the overall virtual asset market within hours, the fear index among investors is rapidly soaring.

Virtual asset experts analyzed that the current downtrend may not be merely a technical correction but a full-scale capital outflow due to macroeconomic uncertainties. If surging oil prices hit the real economy across the board, the liquidity crunch in the virtual asset market will inevitably deepen. Large institutional investors are also wary of additional geopolitical risks and are reducing the proportion of risky assets in their portfolios.

The virtual asset market, including Bitcoin, is expected to continue a period of maximized volatility for the time being, depending on oil price trends and the Federal Reserve's stance. Investors are carefully monitoring the market's direction, watching whether the $75,000 support level holds. As long as the Middle East-related negative factors are not resolved, downward pressure on the market is likely to continue.

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