"Bitcoin Correction Is Temporary, Target Price Set at $200,000" [Crypto Briefing]

[Financial News] Tiger Research, a research and consulting firm specializing in the Asian Web3 market, announced on the 6th that despite uncertainties such as the U.S. federal government shutdown, it maintains its mid- to long-term target price for Bitcoin at $200,000.
After reaching an all-time high of $126,200 on the 6th of last month, Bitcoin has fallen by about 20% over the past month. The total market capitalization of virtual assets also decreased by 22%, dropping from $4.35 trillion to $3.3 trillion, signaling an overall correction phase.
Tiger Research identified the U.S. federal government shutdown as the main cause of Bitcoin’s price correction. The shutdown has halted payments from the U.S. Treasury General Account (TGA), freezing market liquidity. According to Polymarket, there is a 73% chance that the shutdown will be extended beyond the middle of this month.
Uncertainty over a possible rate cut in December, expressed by Federal Reserve (Fed) Chair Jerome Powell, has also dampened market sentiment. Expectations for a rate cut dropped from 95% to 68%. The forced liquidation of $20 billion in leveraged positions on the 10th of last month, along with concerns about overvaluation of artificial intelligence (AI) stocks such as Palantir, contributed to a bearish trend in the New York stock market and further accelerated the correction.
Nevertheless, Tiger Research maintains that the mid- to long-term fundamentals remain unchanged. The U.S. money supply (M2) has surpassed $96 trillion, indicating continued global liquidity expansion, and institutional strategic accumulation is ongoing. The shutdown, historically resolved through bipartisan agreement, is seen as only a matter of time, and the Fed’s overall direction toward rate cuts remains intact.
A representative from Tiger Research stated, "With no specific negative events limited to the virtual asset market, the current correction is due to excessive leverage liquidation and temporary macroeconomic uncertainty," adding, "Bitcoin’s fundamentals remain strong, and the mid- to long-term upward trend is not at risk."
elikim@fnnews.com Kim Mi-hee Reporter