In the near term, Bitcoin is unlikely to enter a downward trend, according to Matt Mena, a researcher at 21Shares, in a conversation with Cointelegraph.
“The structural imbalance between rising demand and rapidly diminishing supply makes a prolonged correction unlikely,” he explained.
Bitcoin reserves on exchanges and over-the-counter platforms remain at historic lows, Mena stated. Meanwhile, demand for the cryptocurrency continues to grow.
On July 14, digital gold reached a new high, surpassing the $122,000 mark. At the time of writing, the rate stands at $118,954 (+1.6% for the day), according to CoinGecko.
Analysts at Bitfinex noted that demand from new investors exceeds the volume of cryptocurrency issued by miners.
Andre Dragosch, Head of Research at Bitwise, pointed to low interest from retail investors. Google search queries for digital gold remain at a minimum.
🚨WATCH: Bitcoin is at new all-time highs but retail is almost nowhere to be found.
Latest leg up is mostly driven by institutions. pic.twitter.com/PTziyUUAri
— André Dragosch, PhD⚡ (@Andre_Dragosch) July 11, 2025
“Bitcoin is at new highs, but retail investors are almost absent,” Dragosch noted.
According to Mena, in the first half of the year, U.S. Bitcoin ETFs absorbed several times more coins than will be mined throughout the year. This does not include corporate buyers, who continue to purchase cryptocurrency.
The 21Shares analyst also warned of potential risks. If U.S. President Donald Trump’s tariffs are harsher than expected or if the Fed delays a rate cut, risk assets may fall.
However, 21Shares considers a prolonged decline unlikely in the next six months.
“After the summer ends and liquidity returns, we expect the upward trend to resume,” Mena added.
The third quarter is historically the weakest for the leading cryptocurrency. Since 2013, the average growth rate has been only 6.32%, according to CoinGlass.
“In summer, markets usually stagnate—traders are on vacation, volumes drop, and price movement slows. But this cycle breaks the norm,” Mena concluded.
Earlier, analysts at Glassnode warned of Bitcoin entering an “overheating zone.”