Bitcoin Structural Imbalance Suggests Limited Downside Risk Amid Strong Fundamentals, Analyst Says
2025-07-16 03:21:21
Main Idea
Bitcoin's market is experiencing a structural imbalance with supply on exchanges at historic lows, driven by strong institutional demand and limited miner replenishment, suggesting limited downside risk despite potential short-term pullbacks.
Key Points
1. Bitcoin's supply on exchanges and OTC desks has reached historic lows, with demand outpacing miners' ability to replenish the market.
2. Bitcoin recently hit a new all-time high of $122,884, reflecting strong market confidence despite seasonal liquidity challenges.
3. Retail interest in Bitcoin appears muted compared to institutional engagement, which often reacts to market volatility.
4. Historically, the third quarter is Bitcoin's weakest period, but recent performance has defied this trend.
5. US-listed Bitcoin ETFs have absorbed multiple times the expected mined BTC this year, tightening supply and reinforcing upward price pressure.
Description
Bitcoin’s recent surge to new all-time highs is underpinned by a significant structural imbalance between soaring demand and dwindling supply, signaling resilience against major downturns. Despite reaching unprecedented price levels,
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