A researcher from the Crypto product provider 21Shares says that bitcoin is unlikely to enter down anytime at any time.
“Increased demand and structural imbalance between rapidly fashioned supply base are unlikely to improve a prolonged improvement, 21Shares Crypto’s research strategist Matt Mena told cointelegraph.
“There are far more positivity than negative,” Meena said.
Exchange, OTC bitcoin supply in all-time climb
Mena said that the supply of bitcoin (BTC) and over-the-counter (OTC) desk held on Crypto exchanges remains at an all-time low while the demand for cryptocurrency continues to increase.
“On the supply side, fundamentals remain even more slant,” he said.
Bitcoin reached a new all-time high of $ 122,884 on Monday, and Bitfinex stated that new buyers entering bitcoin markets are seen as a value-unknown and scoop the cryptocurrency is faster, can supply it faster than miners.
Bitwaise Head of Research Andre Dragosh said on Friday that Google Search for the term “bitcoin” could indicate the lack of interest by retail investors.
“Bitcoin is on the new all-time high, but the retail is almost found,” said the dragosh.
Bitcoin’s new high $ 122,884 new high came a few days later, when he broke all his time of $ 111,970 on 9 July before entering an uptrend extended over the weekend.
Bitcoin is trading at $ 117,804 at the time of publication, According For coinmarketcap data.
Meena said that in the first half of this year, “US-Listed Bitcoin ETF has already absorbed several multiples of BTC which will be mined this year”.
He said, “It also does not include corporate treasury buyers who continue to add quietly to the background,” he said.
Macro Risk Bitcoin can endanger uptrend
However, Meena warned that a reversal could not be completely rejected.
He said, “It is certainly possible that bitcoin gets consolidated, or even a pullback,” he said, marking the two macro risks that can weigh on the Crypto market:
“If Trump’s proposed tariffs are currently more serious than the approximate markets, or if the poly signs are further expected that the rate is further expected, we can see the risky assets including bitcoin widely lower.”
Meena said that 21Shares estimate that an extended price is “not possible” in the next six months.
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He said, “Once the heat ends and the liquidity returns, we hope to resume the upside speed,” he said.
“It is really notable that Bitcoin is setting the new all-time high during the most disorganized, seasonal weak part of the year,” Meena said.
Historically, the third quarter of the year is the weakest performing quarter of bitcoin, which is just 6.32% returns since 2013, According For coinglass data.
“Historically, the heat occurs when the markets are stable – traders are on holidays, the volume dries, and the value is action flattens,” Meena said. “But this cycle is defying that ideal.”
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