Bitcoin's 25% Decline Marks Short-Term Correction, Not Cycle Peak, Bernstein Says

Bitcoin's roughly 25% drop from its all-time high near $126,000 represents a short-term correction rather than a cycle-peak downturn, according to Bernstein analysts. The firm points to rising institutional ownership in ETFs—from 20% to 28%—and substantial absorption of long-term holder supply through $34 billion in combined ETF inflows and corporate purchases. Strategy's conservative leverage and structural tailwinds including political support and favorable liquidity conditions suggest a shallower consolidation than the 60-70% drawdowns of previous cycles.