Bitcoin Pulls Back After $123K Surge, But Analysts See More Room to Run

Bitcoin briefly touched $123,000 on Monday before retreating below $120,000 during U.S. trading hours, yet analysts say the rally is still in its early stages. Despite the dip, BTC remains up 0.6% over the past 24 hours. Ethereum (ETH) slipped back under $3,000, while Dogecoin (DOGE), Cardano (ADA), and Stellar (XLM) saw 2–3% losses.

Among major altcoins, XRP climbed 2.5%, SUI jumped 10%, and Uniswap’s UNI added 6%. Crypto-related stocks also saw mixed results: MicroStrategy (MSTR) and Galaxy Digital (GLXY) gained around 3–4%, while Coinbase (COIN) edged up 1.5%.

Jeff Dorman, CIO at Arca, noted that this rally is far from overheated. Referencing Will Clemente’s analysis, Dorman said current market conditions differ from previous peaks like those tied to the March 2024 Bitcoin ETF hype or the late 2024 Trump election surge, when altcoin derivatives open interest surpassed Bitcoin’s—a sign of excessive speculation not seen now.

Trading volume on centralized and decentralized exchanges rose 23% over the week, but remains well below historic bull run levels. This suggests room for further upside.

Bitpanda CEO Eric Demuth said Bitcoin’s long-term trajectory is supported by growing concerns over sovereign debt and inflation. He believes Bitcoin reaching €200,000 ($233,000) is plausible but emphasizes that deeper institutional integration is the real story. With Bitcoin increasingly adopted by sovereign wealth funds, major institutional investors, and global banks, Demuth argues its market cap could eventually rival gold’s $22 trillion—over nine times Bitcoin's current value.

While short-term profit-taking may cause price consolidation, broader adoption and macroeconomic factors continue to fuel bullish momentum for BTC and the wider crypto market.