There seems to be no end to the trouble Bitcoin (BTC) traders have been facing since the Oct. 10 flash crash last year. While the cryptocurrency had been attempting to recover to previous hei
There seems to be no end to the trouble Bitcoin (BTC) traders have been facing since the Oct. 10 flash crash last year.
While the cryptocurrency had been attempting to recover to previous heights for the past few months, Michael Saylor's Strategy (Nasdaq: MSTR) announcing a partial sale of its Bitcoin holdings on June 1 triggered another crash.
Related: Veteran investor says SpaceX, Anthropic IPO frenzy behind Bitcoin selloff
Last week, Bitcoin fell below $60,000 for the first time since October 2024.
Even though popular market commentator and former hedge fund manager Jim Cramer blamed Strategy for the latest crash, Bitwise advisor Jeffrey Park said Strategy cannot be blamed as investors are rotating capital from Bitcoin to position themselves for IPOs of artificial intelligence (AI) giants such as SpaceX and Anthropic.
Bernstein's Global Digital Assets team published a research note on June 8, assuring that Bitcoin's current decline reflects growing institutional stability instead of structural decline, as per a Decrypt report.
Retail investors are chasing AI stocks and many Bitcoin miners such as IREN have pivoted to AI, with Bitcoin's holder base now dominated by institutional players, pension funds, sovereign wealth funds, and corporate treasuries.
The analysts said this reflects a more stable foundation than the speculative traders that drove previous cycles.
“We believe this maturation phase of Bitcoin is less appreciated, and the criticism has largely come from its lack of retail momentum—which may not be a bad thing considering retail has crowded into AI,” the analysts said in the note. “Bitcoin being boring this cycle should not be held against it, and does not take away from the long-term ‘store of value’ thesis, in our view.”
Though Bitcoin is trading above $62,000 right now, Bernstein analysts reiterated their year-end price target of $150,000.
BTC/USD, Source: DecibelBitcoin was exchanging hands at $62,332 at the time of writing.
