Bitcoin Market Analysis: Despite Price Adjustments, Fundamentals for 2025 Still Remain Robust

The Bitcoin market in 2025 continues to be widely recognized by market participants as maintaining its structural strength despite short-term price fluctuations. Strategic leadership remains focused on the long-term value creation mechanisms of the asset class, even as investor sentiment worsens toward the end of the year.

Current Price Decline Is Statistically Within Adjustment Range

Bitcoin hit a historic high of $125,100 on October 5, 2024, but has since experienced a roughly 30% correction. The current trading rate of $91.17K still resides within the upward trend of the past 12 months, with many large investors, or whales, viewing this as an accumulation opportunity.

The fact that the Fear & Greed Index remains in the “Extreme Fear” zone reflects retail investors’ psychological turmoil, but there are also many institutional investors who see this as a buying opportunity. Ray, CEO of the strategy firm, states that such short-term price noise does not affect the intrinsic value assessment of the asset.

Data-Driven Investment Philosophy Becomes Mainstream

Indicators like mNAV (market value of the company divided by the value of held Bitcoin) embody an investment philosophy that emphasizes long-term value over daily price fluctuations. The firm’s holdings of 671,268 BTC are among the largest for a publicly traded company, amounting to approximately $58.6 billion in assets.

Ray emphasizes, “Bitcoiners should be mathematical and systematic,” highlighting the importance of moving away from reacting to short-term volatility. This philosophy is increasingly becoming a standard for institutional investment decision-making across the market.

US Policy Environment Accelerates Bitcoin Adoption

A bullish factor for 2025-2026 is the unprecedented support for Bitcoin from the US government and banking system. Ray and Chairman Seyler are in ongoing discussions with traditional financial institutions in the US and UAE, exploring how to integrate Bitcoin into existing financial infrastructure.

The previously proposed strategic Bitcoin reserve fund signed by former President Trump has yet to reveal detailed implementation plans, but market speculation suggests an official announcement within 2025 is likely. Alex Thorne, head of research at Galaxy Digital, also states there is a “strong possibility” of an official government reserve announcement this year.

Current Position at a Structural Turning Point

The current price correction is merely a local movement within the broader context of increased institutional adoption and regulatory progress. Price fluctuations amid ongoing structural changes can be seen as a preparatory phase for the next upward cycle. Given the current market sentiment turning bearish, the strength of Bitcoin’s fundamentals is more prominent than ever.