Bernstein says Bitcoin’s next bull run could be longer than expected

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The digital asset market is entering a new phase of growth as Bitcoin (BTC) approaches the $80,000 mark.

According to a new report from the research firm Bernstein, the recent drop to $60,000 represented a clear bottom for the market.

Analysts suggest that the industry is now positioned for "asymmetric upside," driven by a combination of professional investment and the integration of traditional financial systems.

A team of analysts led by Gautam Chhugani noted on Apr. 27 that the industry's most significant period is still to come.

"The best days of crypto are ahead which will reflect in a higher and structurally longer crypto bull cycle," Chhugani shared in a note to clients.

Wall Street deepens its grip on Bitcoin

The report highlights that the way people own Bitcoin is fundamentally changing. About 60% of the total supply has not moved in over a year, suggesting a strong base of long-term "believers." This stability is being reinforced by massive demand from exchange-traded funds (ETFs) and corporate treasury models.

For instance, Michael Saylor's Strategy (Nasdaq: MSTR) currently holds 818,334 BTC. Its specialized "STRC" product is attracting income-focused investors by offering a high-yield, low-volatility way to gain exposure to digital assets.

At the same time, institutional access is widening. Recent moves by Morgan Stanley, through its Bitcoin ETF, and Charles Schwab, through its spot trading platform, have opened new doors for a broader range of investors to participate in the market.

Real-world utility and stablecoin growth

The analysts also pointed out that digital assets are becoming increasingly useful in the real world. Stablecoins—digital tokens backed by the U.S. dollar—have reached an all-time high supply of more than $300 billion.

Importantly, the use of these tokens for payments and settlements is no longer strictly tied to whether crypto prices are going up or down.

Beyond stablecoins, the "tokenized" real-world asset sector has grown to $345 billion, marking a 110% increase year-over-year. This space includes things like private credit and government Treasuries being traded on blockchain rails.

Platforms like Hyperliquid are also seeing more activity in the trading of digital versions of stocks and commodities like oil.

Next big threat to crypto

While the outlook is overwhelmingly positive, the report does acknowledge potential hurdles. Quantum computing remains a long-term concern for blockchain security.

However, analysts believe the risk is currently manageable. They expect the ecosystem will have enough time to transition to new "post-quantum" security standards before these powerful computers pose a genuine threat to current encryption.

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