Bitcoin (BTC), Is Overselling Over?...Conditions for Returning to $70,000

▲ Bitcoin (BTC)

An analysis suggests that Bitcoin (BTC) did not plummet despite a hawkish Federal Reserve (Fed) meeting, indicating that selling pressure has largely been exhausted. Changes in the dollar-centric reserve asset system and increased institutional access were cited as key conditions for Bitcoin's recovery to $70,000.

According to Benzinga on July 31 (local time), Ophelia Snyder, co-founder of 21Shares, said in an interview with Scott Melker on July 30, “Bitcoin feels somewhat oversold. Investors who wanted to leave the market at current prices have already left.” Snyder assessed that a significant portion of selling by anxious investors has already been reflected in the market, citing Bitcoin's limited price reaction despite the hawkish Fed meeting.

Melker also diagnosed that negative factors that would have caused a sharp decline in the past are not having the same impact recently. Snyder presented changes in the world's dollar dependence for reserve assets, increased gold purchases by central banks, and debates about the composition of national reserve assets as reasons for Bitcoin's long-term rise. She argued that if countries seek politically neutral assets and payment networks due to geopolitical conflicts, Bitcoin could play a larger role in global trade and reserve asset discussions.

Smart contract networks such as Ethereum (ETH) and Solana (SOL) were also mentioned as beneficiaries. The explanation is that if countries and financial institutions reduce their reliance on US-controlled payment infrastructure, the utilization of blockchains that provide alternative payment and settlement networks could increase. However, Snyder warned that the cryptocurrency industry is past the era of attracting funds solely based on future concepts.

Snyder emphasized, “Ten years is a very long time to survive on concepts alone. Now, we need to show numbers.” She argued that successful cryptocurrency protocols must demonstrate actual usage, sustainable revenue structures, and clear market demand. She cited Hyperliquid as an example that can present actual activity and economic viability with numbers, predicting that investors will demand metrics comparable to profit per token.

The first decade of the cryptocurrency industry was a race to give investors access to assets they couldn't buy from traditional brokerages. Coinbase Global (COIN), Binance, and 21Shares grew by expanding investment accessibility. As major financial institutions continue to add cryptocurrency trading and investment products, the industry's competitive standard is shifting from accessibility to actual utility and business execution.

[Article Key Summary]

-Ophelia Snyder, co-founder of 21Shares, assessed that selling pressure has largely been exhausted, citing Bitcoin's lack of a sharp decline despite a hawkish Fed meeting.

-Changes in the dollar-centric reserve asset system and demand for politically neutral payment methods were presented as factors that will support Bitcoin's recovery to $70,000.

-It was pointed out that cryptocurrency projects must prove actual usage, sustainable revenue structures, and clear market demand with numbers.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*