Bitcoin Reaches $105K Amid Crypto ETF Issuer’s 35% Upside Projection

Bitcoin Recovers From $102K Dip as Markets Shake Off U.S. Debt Downgrade; Analysts Eye $138K Target

Bitcoin bounced back from early-session losses on Monday, mirroring a broader recovery in risk assets after Moody’s downgraded U.S. government debt late last week. The flagship cryptocurrency briefly dropped to $102,000 before climbing back above $105,000 in the afternoon, erasing most of the decline and notching a 0.4% daily gain.

Ether also saw a rebound, gaining 1.2% to reclaim the $2,500 mark, while decentralized finance token Aave (AAVE) outpaced most major altcoins. The broader CoinDesk 20 Index remained mixed, with Solana (SOL), Avalanche (AVAX), and Polkadot (DOT) still down 2–3% on the day despite a late recovery.

The risk-off mood early Monday was sparked by Moody’s decision to strip the U.S. of its AAA credit rating, following in the footsteps of other major agencies. The downgrade initially rattled markets, pushing 10-year Treasury yields to 4.5% and 30-year yields beyond 5%, before equities and crypto alike began to stabilize.

“Long-term, this downgrade doesn’t move the needle for markets,” said Lumida Wealth CEO Ram Ahluwalia. “Some funds may need to rebalance, but the reaction is mostly noise.”

Market strategist Callie Cox of Ritholtz Wealth added that the move had been widely expected: “This downgrade was inevitable and largely shrugged off by investors.”

Looking forward, digital asset firm 21Shares expects continued upside for Bitcoin. In a new research note, strategist Matt Mena projected a potential rally toward $138,500—roughly 35% higher from current levels.

“Bitcoin’s price action is underpinned by strong fundamentals: consistent inflows into spot ETFs, declining issuance post-halving, and a strengthening macro backdrop,” Mena wrote. He emphasized that demand from institutions and corporations, along with shrinking supply, could drive a significant breakout this year.

With BTC ETFs absorbing more coins than are mined daily and broader adoption trends accelerating, Mena said the market appears “primed for a structural bull run.”