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Analysts from the investment firm Bernstein have attributed the recent rebound of Bitcoin from the psychologically significant level of $70,000 to a shift in the composition of asset holders: the cryptocurrency is increasingly coming under the control of long-term investors, thereby establishing a solid foundation for growth.
Over the past week, Bitcoin has outperformed gold and major stock indices in terms of growth speed, despite the escalation of the military conflict in the Middle East. The leading cryptocurrency rose approximately 7%, reaching $73,628. During the same period, Ethereum, the second-largest cryptocurrency by market capitalization, increased by 9%, reaching $2,274.
Analysts have explained this shift by the ongoing influx of funds into Bitcoin spot exchange-traded funds (ETFs) and a steady rise in the number of corporate buyers of the cryptocurrency. Consequently, Bitcoin coins are being distributed not only among retail users but also among large companies that are acquiring the asset for the long term, thus contributing to market stabilization.
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Approximately 60% of all coins have remained inactive for over a year. The market is transitioning to being controlled by long-term holders of the cryptocurrency rather than speculators looking for quick profits, according to analysts. An increasing number of Bitcoins are being transferred to ETFs, corporate treasuries, and addresses that rarely conduct transactions, which may reduce the impact of selling pressure on the market.
“It may take a physical conflict to realize that Bitcoin remains the most portable (international), digital, and liquid asset without counterparty risks,” Bernstein emphasized, alluding to a potential war with Iran.
According to SoSoValue, U.S. spot Bitcoin ETFs have recorded an influx of funds for three consecutive weeks, totaling $2.1 billion. This capital influx indicates long-term investments by investors through asset managers, as well as through pension and sovereign funds. Bernstein analysts noted that spot Bitcoin ETFs have nearly offset the capital outflow since the beginning of the year—the net outflow of funds has decreased to approximately $460 million, while the total assets under their management amount to $92 billion.
One of the largest corporate holders of cryptocurrency is the company Strategy. According to Bernstein, since the beginning of the year, Strategy has acquired 66,231 BTC for about $5.6 billion at an average price of $85,000 per coin. Recently, Strategy purchased an additional 7,000 Bitcoins for $500 million by selling perpetual preferred shares of Stretch (STRC).
