21Shares Analyst: Bitcoin Fundamentals Strong, Downside Pressure Difficult in the Short Term

BlockBeats News, July 16th, according to Cointelegraph, Matt Mena, Crypto Research Strategist at the crypto product provider 21Shares, stated that Bitcoin is unlikely to enter a downward trend in the near future, as its current trajectory is supported by strong fundamentals.

Matt Mena stated: "There is a structural imbalance between surging demand and rapidly diminishing supply, making the probability of a long-term pullback increasingly unlikely. Currently, the market is much more bullish than bearish. The supply of Bitcoin held on cryptocurrency exchanges and over-the-counter (OTC) platforms is still at historic lows, while the market's demand for Bitcoin continues to rise. From the supply side, Bitcoin's fundamentals are more inclined towards tightening."

Bitcoin hit a new all-time high of $122,884 this past Monday. Bitfinex stated that new buyers entering the market are not sensitive to price and are buying large amounts of Bitcoin at a pace faster than miners are minting coins. André Dragosch, Research Director at Bitwise, pointed out last Friday that the Google search volume for the keyword "Bitcoin" has not significantly increased, indicating low interest from retail investors. Although Bitcoin has hit a new all-time high, retail investors have hardly entered the market.