by Vincent Muthee
Bitcoin (BTC) faced a minor pullback on Tuesday but the coin has rebounded slightly today. However, despite the slight price recovery, the coin is still recording losses marking over 1% plunge on the day. Despite the recent plunge, market experts still remain bullish for the asset.
Dom Harz, Co-Founder of BOB, the Gateway to Bitcoin DeFi, downplayed the decline. In an exclusive commentary, Harz noted that the recent pullback is just noise. Let’s see why he thinks so.
Dom Harz Says BTC’s Pullback After Historic Highs is Just a Minor Distraction
Bitcoin rallied to an all-time high at $124,496 last week marking another milestone for the digital asset. However, since then, the BTC has retraced, dropping by over to $113,868 – a 1.32% dip on the day and 5.08% dip over the last 7 days.
According to Dom, the broader crypto market, meanwhile, has fallen 4.4% over the same period. Harz also dismissed concerns about the drop, pointing to BTC’s resilience.
“The market has cooled after Bitcoin reached an all-time high near $125,000 last week, with Bitcoin currently hovering under $115,000…This short-term correction is really just noise; a minor distraction from the fact that Bitcoin and, particularly Bitcoin DeFi, are undeniably rising,” he said.
BTC’s price correction reflects standard market behavior after a rapid climb. Investors and analysts agree that such retracements often occur as traders lock in profits before the next leg higher.
For instance, one X user noted that the correction is part of a broader 3-wave cycle that sweeps off weak investors out of the market. He noted that Ethereum experienced the same leading to its recent rally thus highlighting that the correction is merely significant.
“Bitcoin is looking like it may turn this pullback into another 3-wave correction that sweeps both highs and lows before continuation of the trend. This is quite common and works well to shake out weak hands. Aggressive expansion usually follows. Ethereum also did this twice recently as pictured. Let’s see if we get it again,” Trade Pro wrote.
If a similar scenario plays out, BTC could recover from the recent dip. In fact, the coin is already showing signs of recovery as it edges towards $114,000 after slipping below $113,000 recently.
Institutions Continue to Stack Bitcoin
Previously, Dom Harz argued that market dynamics have shifted and the BTC market is now driven by institutional adoption. Often, we have seen this play out in the market as BTC purchases by hedge funds, asset managers, and corporations continue to pull prices up.
“Mainstream and institutional adoption will continue to be a driving force behind Bitcoin, as institutions continue to accumulate the crypto asset,” Harz emphasized.
He believes this dynamic underpins Bitcoin’s staying power despite price volatility. Institutional inflows are also enhancing market structure. Increased liquidity and improved custody solutions are making the coin a key investment tool. With that in mind, for long-term players, the short-term price swings are of minor importance compared with the general market direction.
Bitcoin DeFi Opens New Pathways
While Ethereum still leads the decentralized finance sector, BTC-based solutions are gaining ground. Bitcoin DeFi, in particular, is also rising, as highlighted by Harz. In reference to Bitcoin’s mainstream and institutional adoption, Harz noted:
“This will also drive technological developments in Bitcoin DeFi. The potential of Bitcoin’s utility will see institutions looking to put their Bitcoin to work and accelerate the innovation that makes it possible to deploy Bitcoin natively into DeFi protocols.”
Projects like BOB are building platforms that let Bitcoin holders participate directly in decentralized markets. That means lending, borrowing, and yield opportunities without leaving the ecosystem.
For Harz, short-term moves are background noise. The real story lies around adoption and utility. Rally cycles and corrections have defined Bitcoin since inception. What stands out now, according to Harz, is the scale of institutional involvement and the push to make BTC more functional in finance. That, he argues, will define its next chapter.
#blockchain #crypto, #decentralized, #distributed, #ledger
