{"id":91108,"date":"2025-11-17T15:15:18","date_gmt":"2025-11-17T12:15:18","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=91108"},"modified":"2025-11-17T15:20:30","modified_gmt":"2025-11-17T12:20:30","slug":"bitcoins-25-correction-deemed-short-term-by-bernstein-analysts","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bitcoins-25-correction-deemed-short-term-by-bernstein-analysts\/","title":{"rendered":"Bitcoin’s 25% Correction Deemed Short-Term by Bernstein Analysts"},"content":{"rendered":"

The nearly 25% drop in the price of the leading cryptocurrency from its ATH<\/span> near $126,000 is considered short-term and does not signal the onset of a major downtrend, according to researchers at Bernstein, reports The Block<\/a>.<\/p>\n

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The team led by Gautam Chhugani noted that the correction reflects investor anxiety around the traditional four-year cycle, with peaks in 2013, 2017, and 2021.<\/p>\n

Many participants are preemptively locking in profits in anticipation of market weakness in the fourth quarter and a repeat scenario in 2025, effectively creating a \u201cself-fulfilling prophecy\u201d<\/a>.<\/p>\n

However, analysts are confident that the current situation is \u201cfundamentally stronger.\u201d Data suggests a \u201crelatively shallow correction\u201d with the formation of a new local bottom, rather than the usual 60-70% drop typical of past bear phases.<\/p>\n

Supporting this thesis, researchers highlighted the active absorption of Bitcoin’s \u201clong-term\u201d supply. They estimate that about 340,000 BTC (approximately $38 billion), sold by investors who held the coins for at least a year and sold them in the past six months, have been largely offset by an inflow of around $34 billion into spot ETFs<\/a> and corporate treasuries.<\/p>\n

\u201cThis is Not the Cycle Peak\u201d<\/h2>\n

According to analysts, the share of institutional investors in Bitcoin ETFs has risen from 20% at the end of 2024 to the current 28%.<\/p>\n

The total assets under management of the funds have reached $125 billion, despite an outflow of $3 billion over the past three weeks. This shift, they believe, indicates a \u201chigher quality and more stable ownership structure\u201d and reduces the risk of a deep collapse.<\/p>\n

\"btc_etf\"
Weekly outflows from Bitcoin ETFs. Source: SoSoValue<\/a>.<\/figcaption><\/figure>\n

Bernstein also addressed market concerns that Strategy, whose shares trade slightly below<\/a> the value of the Bitcoins on its balance sheet, might begin selling assets if the correction continues.<\/p>\n

Analysts reminded that the company does not sell<\/a> and does not plan to sell any coins. They noted that the issuer’s debt burden remains moderate\u2014about $8 billion in debt against $61 billion in crypto assets. Meanwhile, dividends are \u201cwell covered\u201d by both the current treasury and access to additional capital through at-the-market stock placement programs.<\/p>\n

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\u201cWe expect Strategy to continue buying digital gold during this correction,\u201d the experts noted.<\/p>\n<\/blockquote>\n

Structural growth factors remain, the analysts added. Among them:<\/p>\n