Key Takeaways
How is the price of Bitcoin doing on the charts?
At the time of writing, the cryptocurrency was valued at just over $111,000, having fallen more than 9% in less than a week.
What does Matt Mena of 21Shares think about Bitcoin?
Matt Mena believes that structural demand, driven by ETF inflows and a looser policy outlook, will provide a floor for Bitcoin’s price.
Bitcoin [BTC]after reaching an all-time high of $126,000, it now faces quite a challenging period. At the time of writing this was the case trade at $111,148.07, down 0.9% in the past 24 hours and down 9.43% in the past week.
Matt Mena’s optimistic view on Bitcoin
Despite this dip and shaky investor confidence, Matt Mena, Crypto Research Strategist at 21Shares, believes in Bitcoin’s continued resilience. He recently highlighted the same in light of broader market dynamics as the year comes to a close.
Mena said:
“Overall, Bitcoin’s resilience amid macroeconomic cross-currents and aggressive deleveraging underlines how structural demand – anchored by ETF inflows and dovish policy prospects – continues to provide a floor.”
He added:
“With debt burdens reduced, policy easing underway and structural demand accelerating, the year-end setup looks increasingly constructive for digital assets – paving the way for a potential move towards $150,000 Bitcoin as macro tailwinds and institutional flows continue to align.”
What prompted these comments?
His comments came as markets rebounded after Fed Chairman Jerome Powell signaled potential rate cuts and a pause in balance sheet reduction, with Futures pricing in roughly two cuts with 95% certainty by the end of the year. CME Fed Watch.
The comments stabilized risk assets, with the S&P 500 rising near $6,650 and Bitcoin holding above $110,000.
The recovery followed a $19 billion crypto deleverage event last week. It caused sharp price swings on centralized exchanges, while decentralized platforms remained operational and showed greater resilience.
With excess debt removed, Mena believes the market is now better structured for the next step.
Globally, the IMF lowered its growth forecast for 2025 to 3.2%. However, the thawing of US-China diplomatic ties could provide some optimism.
Domestically, the US government shutdown is now entering its third week, with a 70% chance that it will be resolved by mid-November. This leaves markets dependent on Fed guidance and private indicators to gauge short-term momentum.
Additionally, structural demand for Bitcoin has also been strong, with US ETF inflows of over $6 billion this month and global crypto ETF assets approaching $300 billion by the end of the year.
On-chain data and other metrics to measure Bitcoin performance
Meanwhile, its market dominance rose to 58.7%, while listed companies now a file 172 Bitcoin Treasury Bonds totaling over 1.02 million BTC.
And yet caution remains necessary. The Crypto Fear & Greed Index reading of 32 indicated continued market fear. While technical indicators such as the RSI pointed south – a sign that bears could have the upper hand.
Source: TradingView
However, on-chain analysis also indicated that the majority of Bitcoin supply remains profitable, and that short-term holdings continue to play a crucial role. This is a sign that there is still room for further upside potential.
All things considered, Bitcoin is currently at a pivotal moment. It simultaneously consolidates strength, attracts institutional flows and can deal with short-term bearish pressure.
Whether this marks the start of a sustained rally or a final test of resilience, the coming weeks could be decisive for the year-end trajectory of the flagship cryptocurrency.