Bitcoin continues to show its volatility. After reaching a record high of $123,000, the coin experienced a drop, prompting discussions among analysts about future trends in the cryptocurrency market.
New Bitcoin Record
On Monday, Bitcoin (BTC) set a new all-time high, surpassing $123,000. This achievement positively impacted traders' sentiment, but the joy was short-lived.
Prospects and Correction
Following the new high, BTC began to decline, falling to around $116,000. Market analysts express differing opinions about the future price movements of Bitcoin.
Analyst Warnings
Matt Mena, an analyst from 21 Shares, believes a sharp price decline for Bitcoin is unlikely due to increasing institutional demand. He noted the pressure on Bitcoin supply and rapidly declining reserves:
- "The Bitcoin chart shows a structural imbalance between rising demand and a rapidly declining supply base." - "Given the historically low supply and increasing demand, a long-term correction in BTC is impossible."
However, he warned that potential tariffs from President Trump and delays in Fed interest rate cuts could lead to a correction in risk assets, including BTC.
In conclusion, despite short-term price fluctuations, analysts remain optimistic about Bitcoin's long-term prospects, supported by increasing demand.
