The Bitcoin market is witnessing price declines, yet analysts hold differing opinions about the potential for further downturns.
Overview of the Current Market Situation
Currently, the price of Bitcoin is approaching the $119,000 mark after a slight recovery. Despite the recent drop, some experts believe this decline could be temporary.
Analysts' Opinions on Bitcoin's Future
Matt Mena, an analyst at 21Shares, claims that a significant price drop is unlikely. He points to growing institutional demand and historically low supply as key supporting factors. Mena noted that U.S. ETFs have absorbed several times this year’s expected mined Bitcoin. He emphasized that exchange and OTC reserves are at record lows. Thus, he argues that conditions for a prolonged downturn are simply not in place.
Macroeconomic Risks and Their Impact
Despite the positive outlook, Mena cautioned that macroeconomic risks linger, which might pressure risk assets like Bitcoin. Potential tariff escalations under President Donald Trump and delays in Federal Reserve rate cuts could negatively affect the market in the short term.
Therefore, analysts' outlook on Bitcoin's future largely remains optimistic despite existing risks. Increased demand and limited supply amid historically low inventory levels create favorable conditions for price support.
