Bernstein analysts noted that Bitcoin (BTC-USD) had a dismal year, but its underperformance was less severe than in previous crypto winters.
This was partly thanks to digital asset treasury giant Strategy (MSTR), which “continues to be a net buyer in the market,” analyst Gautam Chugani wrote in a note on Monday.
The token was trading around $62,000, down about 54% from its all-time high of $125,000 in October.
“It’s unclear if we’re completely out of the woods, but this crypto bear market has been milder than the previous drawdown,” Chugani said.
Bitcoin drawdowns · Bernstein Analysts
The analyst noted that Bitcoin inflows from leading treasuries and ETFs will be $10 billion in 2026, up from $60 billion last year.
Even though spot ETFs have lost $5.5 billion in withdrawals this year, corporate treasury buying has stepped in to keep net market inflows positive, with Bernstein noting that “flows have been driven by treasury firms, particularly Strategy.”
“Strategy’s bitcoin purchases have become a balancing force in a market where leading US bitcoin miners have been net sellers, accelerating the shift to artificial intelligence data centers,” the analysts wrote.
Strategy, which under the leadership of Michael Saylor has grown from a software company in 2020 to the largest public repository of digital assets, currently holds more than 843,700 tokens, equivalent to approximately 4% of the total supply.
Investor sentiment was also weighed down by outflows from spot ETFs and capital shifts toward AI-related investments, both of which have impacted Bitcoin’s performance this year.
Bitcoin has been particularly sensitive to the Federal Reserve’s interest rate policies. Concerns have grown in recent weeks that the Fed may have to raise rates later this year.
The token fell 20% in June, its worst monthly performance in four years, amid growing expectations of a rate hike.
Bitcoin was trading around $62,000 on Monday, down about 54% from its all-time high of $125,000 in October. REUTERS/Dado Ruvic · Reuters / REUTERS
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her to X in @ines_ferre.
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