Analysts: The structural demand for Bitcoin still exists, even as the Federal Reserve tightens policies and geopolitical risks intensify.

On June 20, despite the continued pressure on the Bitcoin market from the Fed’s hawkish stance, summer liquidity shortages, and turmoil in the Middle East, Valentin Fournier, principal analyst at BRN, said that the long-term outlook for Bitcoin remains bullish due to continued corporate buying behavior. On Thursday, medical device manufacturer Semler Scientific (SMLR) announced plans to significantly increase its Bitcoin holdings from 4,449 to 100,500 by 2027. The company will raise funds through convertible bonds and on-exchange placements. “While market sentiment remains cautious and near-term dominated by geopolitical uncertainty, we see the Semler Scientific news as a significant signal of structural demand,” Fournier wrote in the note. At the same time, some analysts have also warned that there are systemic risks similar to the 2021 bull-bear cycle in the current market. However, Peter Chung, head of research at Presto, believes that the current trend in crypto vaults is more robust than past boom-crash cycles. He noted that companies are now generally avoiding highly leveraged models that use crypto-backed loans, which have magnified downside risks in the past. In addition, due to the lack of sufficient data, there is currently no “excessive premium” phenomenon that would attract activist investors. Cryptocurrencies such as Bitcoin remained generally stable on Friday. The GMCI 30 index rose slightly, and the price of Bitcoin held around $106,000.