Bitcoin’s Resilience Against Prolonged Corrections
According to Matt Mena, a crypto research strategist at 21Shares, Bitcoin shows strong resilience against prolonged corrections. A structural imbalance between rising demand and shrinking supply makes significant downturns unlikely in the near term.
Supply and Demand Dynamics
Mena notes that Bitcoin supply on exchanges and over-the-counter (OTC) desks sits at record lows, while demand keeps climbing. This imbalance supports Bitcoin‘s current price trajectory. “On the supply side, the fundamentals remain skewed,” Mena told Cointelegraph.
Key Bitcoin Market Facts
- Exchange and OTC supply at historic lows
- Surging demand continues to bolster prices
- Retail interest lags despite price peaks
Retail Interest and Market Trends
Even as Bitcoin hits new highs, retail interest—measured by Google searches for “Bitcoin“—remains subdued. André Dragosch, head of research at Bitwise, notes this disconnect suggests institutional factors drive the current rally.
Macro Risks and Future Outlook
While the outlook appears positive, Mena warns macro risks like aggressive tariffs or delayed rate cuts could impact Bitcoin’s uptrend. Still, 21Shares predicts minimal chance of a prolonged price drop, expecting momentum to rebound post-summer.
Historical Performance vs Current Cycle
Traditionally, Q3 marks Bitcoin’s weakest quarter, averaging just 6.32% returns since 2013. Yet current prices defy seasonal trends, reaching new highs during typically slow summer months.
