{"id":25372,"date":"2025-07-16T16:29:06","date_gmt":"2025-07-16T13:29:06","guid":{"rendered":"https:\/\/forklog.com\/en\/21shares-questions-the-likelihood-of-a-prolonged-bitcoin-correction\/"},"modified":"2025-07-16T16:29:06","modified_gmt":"2025-07-16T13:29:06","slug":"21shares-questions-the-likelihood-of-a-prolonged-bitcoin-correction","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/21shares-questions-the-likelihood-of-a-prolonged-bitcoin-correction\/","title":{"rendered":"21Shares Questions the Likelihood of a Prolonged Bitcoin Correction"},"content":{"rendered":"<p>In the near term, Bitcoin is unlikely to enter a downward trend, according to Matt Mena, a researcher at 21Shares, in a conversation with <a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-price-correction-unlikely-strong-fundamentals-21shares-crypto-analyst\">Cointelegraph<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The structural imbalance between rising demand and rapidly diminishing supply makes a prolonged correction unlikely,&#8221; he explained.<\/p>\n<\/blockquote>\n<p>Bitcoin reserves on exchanges and over-the-counter platforms remain at historic lows, Mena stated. Meanwhile, demand for the cryptocurrency continues to grow.<\/p>\n<p>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 <a href=\"https:\/\/www.coingecko.com\/en\/coins\/bitcoin\">CoinGecko<\/a>.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"565\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/BTCUSD_2025-07-16_16-04-55-1024x565.png\" alt=\"BTCUSD_2025-07-16_16-04-55\" class=\"wp-image-262148\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/BTCUSD_2025-07-16_16-04-55-1024x565.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/BTCUSD_2025-07-16_16-04-55-300x165.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/BTCUSD_2025-07-16_16-04-55-768x424.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/BTCUSD_2025-07-16_16-04-55.png 1438w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Daily BTC\/USD chart on Binance. Data: <a href=\"https:\/\/www.tradingview.com\/chart\/?symbol=BINANCE%3ABTCUSD\">TradingView<\/a>.<\/figcaption><\/figure>\n<p>Analysts at Bitfinex <a href=\"https:\/\/blog.bitfinex.com\/wp-content\/uploads\/2025\/07\/Bitfinex-Alpha-163.pdf\">noted<\/a> that demand from new investors exceeds the volume of cryptocurrency issued by miners.<\/p>\n<p>Andre Dragosch, Head of Research at Bitwise, pointed to low interest from retail investors. Google search queries for digital gold remain at a minimum.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udea8WATCH: Bitcoin is at new all-time highs but retail is almost nowhere to be found. <\/p>\n<p>Latest leg up is mostly driven by institutions. <a href=\"https:\/\/t.co\/PTziyUUAri\">pic.twitter.com\/PTziyUUAri<\/a><\/p>\n<p>\u2014 Andr\u00e9 Dragosch, PhD\u26a1 (@Andre_Dragosch) <a href=\"https:\/\/twitter.com\/Andre_Dragosch\/status\/1943674521308803391?ref_src=twsrc%5Etfw\">July 11, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Bitcoin is at new highs, but retail investors are almost absent,&#8221; Dragosch noted.<\/em><\/p>\n<\/blockquote>\n<p>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.<\/p>\n<p>The 21Shares analyst also warned of potential risks. If U.S. President Donald Trump&#8217;s tariffs are harsher than expected or if the <span data-descr=\"Federal Reserve System of the United States\" class=\"old_tooltip\">Fed<\/span> delays a rate cut, risk assets may fall.<\/p>\n<p>However, 21Shares considers a prolonged decline unlikely in the next six months.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;After the summer ends and liquidity returns, we expect the upward trend to resume,&#8221; Mena added.<\/em><\/p>\n<\/blockquote>\n<p>The third quarter is historically the weakest for the leading cryptocurrency. Since 2013, the average growth rate has been only 6.32%, according to <a href=\"https:\/\/www.coinglass.com\/today\">CoinGlass<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;In summer, markets usually stagnate\u2014traders are on vacation, volumes drop, and price movement slows. But this cycle breaks the norm,&#8221; Mena concluded.<\/em><\/p>\n<\/blockquote>\n<p>Earlier, analysts at Glassnode <a href=\"https:\/\/forklog.com\/en\/news\/analysts-warn-bitcoin-is-edging-into-an-overheating-zone\">warned<\/a> of Bitcoin entering an &#8220;overheating zone.&#8221;  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>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. &#8220;The structural imbalance between rising demand and rapidly diminishing supply makes a prolonged correction unlikely,&#8221; he explained. Bitcoin reserves on exchanges and over-the-counter platforms remain at historic lows, Mena stated. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":25371,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1372,18,1268],"class_list":["post-25372","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-21shares","tag-bitcoin","tag-on-chain-analysis"],"aioseo_notices":[],"amp_enabled":true,"views":"17","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/25372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=25372"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/25372\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/25371"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=25372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=25372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=25372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}