Bitcoin attempts to settle at $77,000... Cryptocurrency takes a breather. When will it rebound?

▲ Bitcoin (BTC) ©Dasol Ko

Ahead of a series of interest rate decisions by global central banks, the virtual asset market has entered a period of consolidation amid strong wait-and-see sentiment. While major assets like XRP (Ripple) are showing divergent trends, the massive accumulation by institutional whales is firmly igniting the spark for a new long-term bull market.

According to investment specialized media FXStreet on April 29 (local time), the total market capitalization of virtual assets is currently stagnant around $2.57 trillion, and investors are holding their breath for policy decisions from the US Federal Reserve, the European Central Bank, and the central banks of Canada and the UK. The market anticipates a hawkish stance from authorities, and the investor sentiment index broke last week's low, plummeting to 26, confirming that fear has once again gripped the market. The fact that this index has not exceeded 50 since September is interpreted as a key signal of persistent bearish sentiment.

The leading cryptocurrency, Bitcoin (BTC), fell by about $4,000 from its high over the past two days, dropping to the $75,600 level, but on Wednesday, it attempted to settle above $77,000 and began to rebound. While the current upward trend has been broken, a complete bearish reversal has not been confirmed, and growth appears to have temporarily slowed in the 50% retracement zone of the January and February declines. Virtual asset analysis firm GSR identified $80,000 as a significant psychological barrier where a large volume of options is concentrated, while QCP Capital analyzed $82,000 as a key resistance level that needs to be broken.

In contrast to the short-term market fear, institutional long-term outlooks are extremely optimistic. Bernstein defined Bitcoin's lowest point in February at $60,000 as a clear bottom, predicting that continuous capital inflows from institutional investors will lead to a higher and structurally longer bull cycle. Tim Draper, founder of Draper Associates, also emphasized that companies must hold 5% to 15% of their reserves in Bitcoin to fulfill their financial responsibilities to shareholders.

Overwhelming accumulation at the national and corporate levels is also continuing. Patrick Witt, Chairman of the US Presidential Advisory Committee on Digital Assets, heightened market expectations by announcing that a significant announcement regarding US strategic Bitcoin reserves would be made in the coming weeks. Meanwhile, Bitmain, the largest corporate holder of altcoin leader Ethereum (ETH), was revealed to have swept up over 5 million units at an average price of $2,369 over the past 10 months, accumulating a massive 5.08 million Ethereum, accounting for 4.21% of the total supply.

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