Bitcoins Resilience: 21Shares Analyst Doubts Lengthy Correction Amid Strong Demand

In the near future, Bitcoin is unlikely to enter a downward trend. This viewpoint was expressed by 21Shares researcher Matt Mena in a conversation with Cointelegraph.

He explained that «the structural imbalance between rising demand and swiftly diminishing supply makes a prolonged correction improbable.»

Mena noted that Bitcoin reserves on cryptocurrency exchanges and over-the-counter platforms are at a historical low, while demand for the cryptocurrency continues to increase.

On July 14, digital gold reached a new peak, exceeding $122,000. As of the time of writing, the price stands at $118,954 (+1.6% over the day), according to CoinGecko.

Analysts at Bitfinex pointed out that demand from new investors outpaces the amount of cryptocurrency being mined.

Bitwise’s head of research, Andre Dragosh, highlighted the low interest among retail investors, noting that searches for digital gold on Google remain minimal.

«Bitcoin is at new highs, but retail investors are nearly absent,» Dragosh remarked.

According to Mena, in the first half of the year, American Bitcoin ETFs absorbed several times more coins than will be mined throughout the entire year. This figure does not include corporate buyers who continue to acquire the cryptocurrency.

The 21Shares analyst also cautioned about potential risks. If the tariffs set by President Donald Trump turn out to be stricter than expected, or if the Federal Reserve postpones lowering the interest rate, risk assets might decline.

However, 21Shares considers a prolonged downturn unlikely over the next six months.

«After summer ends and liquidity returns, we expect a restoration of the upward trend,» Mena added.

Historically, the third quarter has been the weakest for the leading cryptocurrency. Since 2013, the average growth rate has been just 6.32%, according to CoinGlass.

«Markets usually stagnate in the summer—traders are on vacation, volumes drop, and price movement slows down. But this cycle defies the norm,» Mena concluded.

It is worth noting that analysts from Glassnode have warned about Bitcoin entering a «zone of overheating.»