Bitcoin (BTC) experienced a historic day on Monday, breaking records for the first time in a row, surpassing $123,000. However, the joy of a new ATH was short-lived. Shortly after surpassing $123,000, BTC began to decline, falling to the $116,000 level. While the market agrees that this correction is due to profit taking and is normal, they are divided on which direction the price will move next. At this point, 21 Shares analyst Matt Mena evaluated the rise in Bitcoin and the subsequent decline. Matt Mena said that a sharp decline in Bitcoin is unlikely as institutional demand strengthens. Mena stated that Bitcoin is unlikely to experience a prolonged sharp decline due to increasing demand and shrinking supply. Stating that Bitcoin supply is at a record low level, and spot BTC ETFs have received several times the amount of BTC expected to be issued this year, the analyst said: “The Bitcoin chart shows a structural imbalance between rising demand and a rapidly declining supply base. While the amount of Bitcoin held on exchanges and over-the-counter platforms is at historic lows, demand continues to grow. US Bitcoin ETFs have absorbed several times the amount of Bitcoin that will be mined this year in just the first half of the year. “I would say that a long-term correction in Bitcoin is impossible, as there are far more positive factors than negative factors in the end.” However, Mena warned that while the outlook is positive, US President Donald Trump’s potential tariff policies and delays in Fed interest rate cuts could lead to a correction in risky assets, including BTC. *This is not investment advice. Continue Reading: Analyst Reveals What to Expect Next for Bitcoin! "Is a Harder Correction Coming?"
