[Analysis] "Low Probability of Bitcoin Entering a Long-term Correction"

YM Lee

Summary

Matt Mena, digital asset research strategist at 21Shares, conveyed that there is a very low probability of Bitcoin entering a prolonged correction.
It was stated that even though Bitcoin supply is at a historic low, demand continues to rise.
It was reported that Bitcoin ETFs in the United States absorbed several times the amount of Bitcoin to be mined this year.

There is an opinion that the likelihood of Bitcoin (BTC) entering a prolonged correction phase is very low.

According to a report by Cointelegraph on the 16th (local time), Matt Mena, a digital asset research strategist at 21Shares, explained, "There is a structural imbalance reflected in the Bitcoin chart between surging demand and a quickly dwindling supply base. Since there are far more positive factors than negative ones, a long-term correction is impossible."

He added, "Although the amount of Bitcoin held by exchanges and over-the-counter desks is at a historic low, demand continues to increase."

Bitcoin, riding momentum from optimism over 'Crypto Week'—in which votes on three major digital asset bills in the United States took place last Monday—hit an all-time high of $123,000 before declining to its current level of around $117,000.

He also noted that the role of the Bitcoin ETF should not be overlooked. Mena stated, "The Bitcoin ETFs listed in the United States absorbed several times the amount of Bitcoin to be mined this year in just the first half of the year."

BTC