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Analysts Call Current Bitcoin Bear Market a 'Comforting' Sign of Maturity
Summary
According to analysts at Bernstein, Bitcoin's current market correction is notably milder than in previous cycles. This trend is viewed as a positive indication that the cryptocurrency market is maturing.
Bitcoin recently retested lows near $60,000, a decline of approximately 54% from its cycle peak of about $125,000 in November 2025. In a note to clients, analysts from Bernstein, led by Gautam Chhugani, described the current market conditions as "rather comforting," pointing out that the drawdown is significantly shallower than the 75% to 90% corrections seen in prior bear markets.
The analysis noted a slowdown in investment flows, with Bitcoin treasury companies and ETFs attracting $10 billion in 2026, down from $60 billion in the previous year. While Bitcoin ETFs have seen $5.5 billion in outflows this year, these have been reportedly offset by purchases from corporate treasury holders, including the company Strategy (STRC), which is described as a net buyer in the market.
A shift has also been observed among U.S.-listed Bitcoin miners, who have become net sellers of the asset. According to the report, many of these companies are pivoting toward AI data center operations, leading to a decrease in their share of the global hash rate as international miners gain ground.
AdOn the regulatory front, Bernstein highlighted ongoing developments such as rulemaking for stablecoins under the GENIUS Act and the rollout of crypto perpetual futures on U.S. platforms. The passage of the CLARITY Act this year is still viewed as uncertain.
In conclusion, the analysts suggest that while painful, the current correction indicates the crypto market is "growing up." Bernstein acknowledged that its year-end Bitcoin price target of $150,000 "appears ambitious" in the current context but maintains a long-term bullish outlook for the broader cycle.