Bitcoin, Buying Interest Disappears at $78,000...Warning of Plunge Amid Inflation Crisis

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As Bitcoin (BTC) remains stuck around the $78,000 level, the macroeconomic headwind of soaring oil prices is pressuring risk assets across the board, raising investor tension.

According to crypto media outlet Cointelegraph on April 24 (local time), Bitcoin is struggling to break through the $78,000 resistance level and continues its sideways movement. This is due to rising international oil prices fueling inflation concerns, which has sharply dampened investment sentiment towards risk assets. A surge in oil prices typically puts upward pressure on prices, acting as a factor reducing expectations for an interest rate cut by the U.S. Federal Reserve.

Fear of a risk asset squeeze is weighing on the market. Rising oil prices slow down the pace of price stabilization, suggesting the possibility of a prolonged hawkish stance by the Fed. As a result, the U.S. dollar continues to strengthen, appearing to absorb liquidity from the cryptocurrency market, including Bitcoin. Investors are turning to a wait-and-see approach, watching for 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 indicators show a slowdown in the movement of whale addresses. Retail investors are also increasing their cash holdings in preparation for increased volatility. As the buffer zone protecting the market weakens, prices could be significantly shaken even by minor negative news.

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

The cryptocurrency market has now moved beyond mere chart analysis and has reached a stage where it reacts sensitively to macroeconomic indicators such as international oil prices and interest rates. With the possibility of inflation re-igniting, 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.*