Bitcoin briefly reached a new all-time high above $123,000 on Monday before swiftly retreating to around $116,000, triggering a wave of debate across the market.
While many view the decline as standard profit-taking, opinions remain split on whether more downside is ahead.
Matt Mena, analyst at 21Shares, believes a significant drop is unlikely, pointing to growing institutional demand and historically low supply as key factors supporting the price. According to Mena, the imbalance between soaring demand and limited available Bitcoin is becoming more pronounced.
“ETFs in the U.S. have already absorbed several times this year’s expected mined Bitcoin,” he noted, emphasizing that exchange and OTC reserves are at record lows. With fewer sellers and more buyers, he argues, conditions for a prolonged downturn are simply not in place.
Still, Mena cautioned that macro risks linger. Potential tariff escalations under President Donald Trump and delays in Federal Reserve rate cuts could pressure risk assets like Bitcoin in the short term—even if the long-term structure remains bullish.
At the time of writing BTC’s price is closing in on the $119,000 mark after a slight recovery today.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
Source: https://coindoo.com/btc-pullback-after-123k-surge-unlikely-to-last-says-21shares-analyst/