Bitcoin (BTC) prices have now fallen below $103,000, following a 1.17% decline in the last 24 hours. The Maiden cryptocurrency has continued to witness a major market correction since it reached a new all-time high of $111,970 on May 22nd.
Interestingly, renowned crypto analyst Miles Deutscher is divided into one of the most prominent bull driving factors of the asset, highlighting the positive and negative possibilities.
Strategy, Other: Bitcoin’s biggest allies and risks, Deutscher says
In a June 21st X post, Miles Deutcher shared an interesting view on the potential of Bitcoin finance companies on the market. For context, Bitcoin Treasury Company refers to businesses that have BTC Holdings on their balance sheets. Like retail investors, these companies have chosen to acquire BTC as a reserve asset and long-term investment, as opposed to traditional assets such as gold, cash and bonds.
According to Coingecko data, there are 34 public Bitcoin finance companies with total holdings of 724, 612 BTC. These companies include names such as Tesla Inc., Metaplanet Inc., Marathon Digital Holdings, and the most prominent MicroStrategy Inc. (Strategy).
In general, the emergence of Bitcoin financing companies has become a bullish development that, together with the spot ETF market, announces institutional investment in Bitcoin. Miles Deutscher assumes that the increasing public perception of BTC’s investment potential by mainstream companies serves as a contributor to the CPRICE rise of assets with potential targets set at $200,000.
However, well-known market analysts highlight the potential risks these Bitcoin finance companies pose as negative catalysts. Their fiduciary responsibility makes him warn of scenarios where forced sales could occur during the bear market and the wider recession.
According to Miles Deutscher, the real threat may not be real Delaveraging, but rather frontrunning by smart money investors who are expecting Rewind. He notes that this dynamic could spread to the Bitcoin ETF market. The Bitcoin ETF market has already attracted more than $46.666 billion inflows. In a risk-off environment, institutional investors can cause significant outflows, which can exacerbate the downsides of the market.
BTC price overview
At the time of writing, Bitcoin was trading at $102,843, reflecting a 1.85% decline last week. Following this price drop, investors’ attention changes to a $100,000 psychological support zone, and intruding below that will trigger large market liquidation.
Special Images from Reuters, TradingView Chart
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