Analyst: Bitcoin's Structural Demand Still Exists, Even as the Fed Tightens Policy and Geopolitical Risks Escalate

BlockBeats News, June 20th, despite the hawkish stance of the Federal Reserve, summer liquidity shortages, and ongoing turmoil in the Middle East continuing to put pressure on the Bitcoin market, BRN Chief Analyst Valentin Fournier stated that the sustained buying behavior of corporations is still bullish for Bitcoin's long-term outlook.

On Thursday, medical equipment manufacturer Semler Scientific (SMLR) announced plans to significantly increase its holdings of Bitcoin from 4,449 coins to 100,500 coins by 2027. The company will raise funds through convertible bonds and on-exchange issuance. Fournier wrote in the report, "Despite the market sentiment remaining cautious and being short-term dominated by geopolitical uncertainties, we believe Semler Scientific's news is a significant signal of structural demand."

Meanwhile, some analysts have also warned of systemic risks in the current market similar to the 2021 bull-bear cycle. However, Presto's Research Director Peter Chung believes that the current trend in the crypto treasury is more robust than the past "boom-bust" cycles. He pointed out that currently, businesses are generally avoiding the high-leverage model of using cryptocurrency as collateral, which in the past amplified downside risks. Additionally, due to a lack of sufficient data, there is currently no observable "over-valuation" phenomenon that would attract aggressive investors.

Cryptocurrencies like Bitcoin remained relatively stable on Friday. The GMCI 30 index saw a slight increase, with Bitcoin's price maintaining around $106,000.