Bitcoin Stalls at $79K as Rally Momentum Fades

Bitcoin's recent price surge has run into a wall, struggling to breach the $79K threshold. Despite initial support above $79,500, the cryptocurrency has seen this level decline to $79,000.

Market data shows that bitcoin failed to break through the barrier after 5:00 a.m. EST, only reaching as high as $78,830. In contrast, each wave of sell-offs has left the price with lower lows, suggesting the rally is losing momentum.

The trend was consistent across the broader cryptocurrency market, where total liquidations surpassed $302 million. This included leveraged long bets accounting for the larger chunk, while short bets took a smaller hit.

Arthur Hayes, founder of BitMEX, has tied bitcoin's performance to actions by the U.S. Treasury, but there is no consensus on how long bond buybacks will sustain the upward trajectory. Han Tan, chief market analyst at Bybit, remains cautious and flags major macroeconomic risks that could derail bitcoin's rally.

Tan warns that if U.S. Treasury Secretary Scott Bessent offers greater nuance to his 'Treasury twist', or if Fed Chair Kevin Warsh issues an overtly hawkish signal, it may force bitcoin and other cryptos to surrender recent gains.