Bitcoin Slumps Towards $79K as Rally Momentum Fades Amid Macro Risks
Bitcoin's price rally is showing signs of slowing down as it approaches the $79K wall, sparking concerns among analysts that the momentum may be fading.
The cryptocurrency has struggled to breach the threshold after reaching a high of $78,830, with its price action consistent with how it performed since peaking at $81,255 on August 24. Despite initial support above $79,500, the level has declined to $79,000.
According to market data, the number of liquidations has eased, but leveraged long bets have taken a bigger hit, with wiped-out long bets reaching $77 million and total liquidations surpassing $302 million. This trend is consistent across the broader cryptocurrency market.
Some analysts believe that the recent price surge was triggered by the reawakening of the debasement trade and amplified by a short squeeze, but others remain cautious about bitcoin's upward trajectory due to macroeconomic risks. Bybit analyst Han Tan warns that BTC's rally may run out of momentum if U.S. Treasury Secretary Scott Bessent offers greater nuance to his 'Treasury twist' or if Fed Chair Kevin Warsh delivers an overtly hawkish signal at Jackson Hole this Friday.