CoinShares expert James Butterfill: Bitcoin price corrected by 16% despite strong fundamentals
CoinShares analyst James Butterfill stated that the current decline in Bitcoin (BTC) prices appears unfounded from a fundamental standpoint. He noted that the price of the leading cryptocurrency has retreated to June 2025 levels, having lost 16% from its recent peak. By comparison, the Nasdaq index fell by only 2% over the same period. The CoinShares researcher noted that the sharp decline triggered a chain of liquidations, the effects of which are still being felt.
Butterfill believes a growing disconnect has emerged between prices and fundamentals. Despite the correction, the overall macroeconomic environment remains favorable for Bitcoin's price. Recent Federal Reserve surveys, including those from its Philadelphia and New York branches, showed significantly weaker results than expected, indicating a deterioration in business sentiment. Furthermore, the release of many economic data points is being delayed due to the ongoing government shutdown in the US.
According to Polymarket, the probability that it will last more than 30 days has reached 82%, potentially breaking the all-time record. Amid political instability, regional bank shares have begun to fall again, reminiscent of the situation in March 2023. These events have heightened concerns about the economy, and the futures market is already pricing in two additional interest rate cuts—on October 29 and in December.
Amid the general turbulence, digital asset funds are demonstrating resilience. Net inflows of $40 million were recorded this week, while outflows from Bitcoin ETPs totaled $588 million—significantly lower than during previous corrections, when sales volumes reached $2.9 billion.
Butterfill emphasized that the main factor behind the decline was trade tariffs between the US and China. However, according to the researcher, these tariffs pose a greater threat to traditional stocks than to digital assets. Bitcoin, in his opinion, remains relatively immune from such risks.
Source: cryptonews.net
