Despite a nearly 35% pullback from its peak at $126,000, Bitcoin’s broader market structure remains bullish. The recent correction has effectively digested the so-called “five-fold impact,” with selling pressure fading and the long-term growth narrative staying firmly in place.
Key support is being driven by valuation realignment and expanding institutional allocation. JPMorgan places Bitcoin’s fair value around $170,000, suggesting the asset is materially undervalued at current levels. On-chain metrics indicate continued accumulation by whales and long-term holders, while mining costs near $90,000 provide a strong price floor. Conditions are aligning for the next upward move.
While regulatory factors introduce short-term uncertainty, adoption within traditional finance is accelerating. Bitcoin’s growing acceptance as collateral by major institutions is strengthening its role as digital gold. With leverage reduced and volatility compressing, the market has entered a consolidation phase. Short-term price swings do not disrupt the underlying uptrend, and Bitcoin’s medium- to long-term allocation appeal is becoming increasingly evident.
$BTC
