A researcher from crypto-product provider 21Shares says that Bitcoin’s current trend is unlikely to change anytime soon. Strong fundamentals are supporting the currency.
“The structural imbalance between surging demand and a rapidly vanishing supply base makes a prolonged correction increasingly unlikely,” 21Shares crypto research strategist Matt Mena told Cointelegraph.
“There are far more positives than negatives right now,” Mena is added.
Bitcoin exchange and OTC supply is at an all-time high
Mena claimed that Bitcoin was (BTCThe supply of cryptocurrency on exchanges and OTC desks is at a record low, while the demand continues to grow.
“On the supply side, the fundamentals remain even more skewed,” “He said”
Bitfinex announced that Bitcoin hit a record-breaking high on Monday of $122,884. new buyers entering the Bitcoin market The cryptocurrency is being snatched up faster by miners than they can mine it.
Bitwise head of research André Dragosch pointed out on Friday that the lack of Google search interest For the term “Bitcoin” This could be a sign of a low level of retail investor interest.
“Bitcoin is at new all-time highs, but retail is almost nowhere to be found,” Dragosch said.
Bitcoin reached a new all-time record high of $122,884 just days after breaking its previous high of $111970, on July 9. Then it entered a trend of upward movement that lasted into the weekend.
Bitcoin’s current price is $117.804 according CoinMarketCap Data
Mena stated that during the first half this year. “US-listed Bitcoin ETFs have already absorbed several multiples of the BTC that will be mined this year.”
“That doesn’t even include corporate treasury buyers, who continue to add quietly in the background,” He added.
Bitcoin’s uptrend could be threatened by macro risks
Mena warned that it is not possible to rule out a complete reversal.
“It is certainly possible that Bitcoin consolidates, or even sees a pullback,” He said that two macro-risks could affect the cryptocurrency market.
“If Trump’s proposed tariffs end up being more severe than markets currently anticipate, or if Powell signals that rate cuts are further off than expected, we could see risk assets broadly reprice lower, including Bitcoin.”
21Shares predicts that a prolonged price drop over the coming six months is unlikely “is unlikely,” Mena said.
Related: Bitcoin could rally to $135K before ‘corrective phase’ — Analyst
“Once summer ends and liquidity returns, we expect upside momentum to resume,” He added.
“What’s truly remarkable is that Bitcoin is setting new all-time highs during the most illiquid, seasonally weak part of the year,” Mena said.
Since 2013, the average Bitcoin return for the third quarter is just 6.32 percent. according CoinGlass is a database of CoinGlass information.
“Historically, summer is when markets stagnate — traders are on holiday, volume dries up, and price action flattens,” Mena said. “But this cycle is defying that norm.”
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Source: cointelegraph.com
