Institutional Flows Reshape Bitcoin Market as It Outperforms in Turbulence
Bitcoin’s recent strength amid geopolitical tensions reflects a shift in who owns the asset, with institutional participation playing a growing role, according to Bernstein.
The cryptocurrency gained around 7% over the past week, while ether (ETH) rose roughly 9%, outperforming gold and global equity markets during a period of heightened uncertainty. Analysts say the performance highlights how institutional demand is reshaping market dynamics.
“We believe the rise of ETFs alongside Strategy’s accumulation strategy has transformed bitcoin’s ownership base,” analysts led by Gautam Chhugani said in a report.
Strategy—described as acting like a “buyer of last resort”—has continued to add to its holdings despite market volatility. The firm recently purchased about $1.57 billion worth of BTC, extending its streak of weekly acquisitions.
Led by Executive Chairman Michael Saylor, the company bought 22,337 bitcoin at an average price of $70,194, bringing its total holdings to 761,068 BTC, acquired at an average cost of $75,696 per coin.
The firm has also leaned on its STRC preferred equity program, which offers yield tied to the Secured Overnight Financing Rate (SOFR), helping fund further bitcoin purchases through equity issuance.
At the same time, spot bitcoin ETFs have attracted roughly $2.1 billion in inflows over the past three weeks, lifting ETF ownership to about 6.1% of total supply. Bernstein noted that these vehicles are increasingly drawing capital from institutional investors, including wealth managers, pension funds, and sovereign entities.
While retail investors have been net sellers in recent months, long-term holders continue to dominate supply. Around 60% of bitcoin has not moved in over a year, signaling strong conviction among investors treating the asset as a store of value.
Bitcoin’s outperformance during recent geopolitical stress has also reignited discussion around its “digital gold” narrative. Though it underperformed gold for much of the past year, its recent gains have prompted some analysts to argue it is beginning to function as a hedge against global instability, even as debate continues.
For equity investors, Bernstein noted that Strategy (MSTR) remains a high-beta proxy for bitcoin exposure and is currently trading at roughly a 14% discount to its underlying bitcoin net asset value.
At last check, bitcoin was trading near $73,900, up 4.4% on the day, while ether was up 8.4% at around $2,273.
