‘Does not feel like a cycle-peak’: Bernstein says bitcoin’s 25% slide reflects short-term correction

Analysts at Bernstein, led by Gautam Chhugani, assert that Bitcoin's recent 25% slide from its all-time high is a short-term correction, not the beginning of a major bear cycle. They suggest investors are preemptively selling based on historical four-year cycle patterns, creating a self-fulfilling prophecy, but argue the current fundamental backdrop is much stronger. Evidence supporting this view includes the absorption of long-term holder supply by spot ETF inflows and corporate treasuries, and rising institutional ownership via ETFs, indicating 'higher quality and consistent ownership.' Bernstein also dismissed concerns about MicroStrategy liquidating holdings, noting management confirmed they are not selling and the firm's leverage is conservative. The firm sees structural tailwinds, including political support and expected legislation, concluding that the market 'does not feel like a cycle-peak' and the pullback may be an attractive entry point.

(Source：The Block)