Bernstein said Bitcoin’s increasingly broad and diversified investor base continues to support its long-term thesis as a store of value.
According to Wall Street broker Bernstein, Bitcoin’s recent price weakness is being driven more by weaker capital inflows than by concerns over quantum computing or similar structural risks.
Fears around future quantum computing breakthroughs—capable of potentially breaking Bitcoin’s cryptography—have become a recurring discussion in crypto markets. This has intensified after Google research suggested that the computing power required to challenge blockchain security may be lower than previously estimated.
Bernstein noted that Bitcoin treasury firms and spot ETFs have attracted around $12 billion in inflows so far in 2026, a sharp drop from $60 billion in 2025. Within that, ETFs have seen approximately $2.6 billion in net outflows from a $75 billion asset base, with most of the remaining demand coming from corporate buyers such as Strategy.
The analysts said the slowdown is largely due to retail investors shifting focus toward artificial intelligence-related opportunities, adding that some of the strongest-performing crypto segments this year have been tied to tokenized equities and commodities.
Despite this, Bernstein analysts led by Gautam Chhugani noted, “Bitcoin still may offer some diversification from the unusual singular AI driven momentum markets we have experienced this year.”
They also argued that the relatively modest scale of ETF outflows is a positive sign, suggesting Bitcoin ownership is becoming less dependent on short-term, momentum-driven retail participation.
Bitcoin has struggled over recent months, falling from around $82,000 in early May to roughly $63,000 today—more than a 20% decline. It briefly slipped below $60,000 last week, its lowest level since October 2024, and remains about 50% below its October 2025 peak near $126,000.
Analysts attributed the downturn to persistent ETF outflows, weaker risk appetite, and a broader rotation of capital into AI-driven equities and high-profile stock offerings.
Unlike previous market cycles dominated by retail traders, the current structure includes ETFs, corporate treasuries, wealth managers, pension funds, and sovereign investors—creating what Bernstein describes as a more diversified and resilient ownership base.
While Bitcoin has lacked the momentum seen in AI-linked assets this year, Bernstein argued that its relatively “boring” price action does not undermine its long-term store-of-value narrative and may even indicate a healthier market structure.
Citing Citi research, spot Bitcoin ETF flows are estimated to account for roughly 45% of weekly Bitcoin price movements, making them a key indicator of demand trends.
At the time of writing, Bitcoin was trading near $62,600.
