Bitcoin failed to maintain momentum above $80,000 after being rejected while trying to surpass $82,000.
At the time of writing, Bitcoin price is at $77,061, up 0.15% since it opened early Tuesday in Asian trading.
The fall back to around $76,000 also caused about $400 million in long positions to be liquidated in four days, thus undermining short-term investor confidence.
However, there are several factors that could help Bitcoin re-enter $80,000 sooner than market expectations.
One of the main catalysts is the aggressive buying of Bitcoin by Strategy, a company led by Michael Saylor.
In just one week, the company bought around $2 billion in Bitcoin.
This move shows institutional confidence in Bitcoin's long-term potential despite the market's weakness.
In addition, Strategy also repurchased $1.5 billion of its debt maturing in 2029, reducing the risk of share dilution and opening up room for additional Bitcoin purchases in the future.
On the macroeconomic front, the yield on the 10-year US Treasury bond rose to around 4.60%, a 16-month high.
This indicates that investors are starting to worry about the growing debt burden of the United States, especially with about $2 trillion of long-term debt set to mature in 2026.
This situation increases the possibility that the Federal Reserve will have to continue buying government bonds, which could weaken the value of the US dollar.
When confidence in fiat currencies declines, scarce assets such as gold and Bitcoin are usually the choice of investors.
In addition, geopolitical tensions involving the US and Iran have also played a big role.
Brent oil prices surged above $110 after talks to reopen the Strait of Hormuz broke down. Rising oil prices increased inflationary pressures and affected the sentiment of risk markets such as crypto.
However, if a peace deal is reached between the US and Iran, investor sentiment could return to positive territory and help Bitcoin surge back above $80,000.
While Bitcoin is still around 39% below its all-time high, the US stock market is close to setting new records.
