Bitcoin's Recovery Signals Growing Strength Among Long-Term Holders, Bernstein Reports
According to Bernstein analysts, the ownership landscape of Bitcoin is being progressively transformed through ETF capital inflows and persistent corporate purchases.
The latest recovery in Bitcoin's price demonstrates the growing resilience of its long-term holder community, as exchange-traded fund capital flows and corporate treasury acquisitions continue to transform who owns the digital asset, according to a Monday research note from Bernstein that was provided to Cointelegraph.
According to Bernstein's analysis, Bitcoin delivered superior returns compared to gold and leading stock market indices throughout the previous week, even as tensions escalated in the Middle East region, with Bitcoin (BTC) gaining 7% and Ether (ETH) climbing 9% during this timeframe.
The firm's analysts attributed this performance shift in part to ongoing capital inflows into US spot Bitcoin exchange-traded fund (ETF) products and the persistent accumulation strategies of corporate entities such as Strategy, which they believe are progressively bolstering Bitcoin's long-term holder foundation, resulting in a more robust market infrastructure.
"Maybe it takes a physical conflict to realise Bitcoin remains the most portable (cross-border), digital and liquid asset with no counterparty risks,"
Bernstein
The fundamental argument from Bernstein centers on the evolving nature of Bitcoin ownership. With approximately 60% of Bitcoin's total supply remaining dormant for over a year, the market landscape is becoming increasingly characterized by long-term holders instead of speculative short-term capital flows. As greater amounts of Bitcoin transition into ETFs, corporate balance sheets and wallets that seldom engage in transactions, the influence of short-term selling pressure could diminish, potentially providing the market with a more resilient foundation during turbulent periods.
ETFs, corporate treasuries fuel Bitcoin resilience
According to CoinGecko data, BTC was trading at approximately $73,208 at the time of writing, representing an increase of more than 8% over the preceding seven days despite escalating geopolitical tensions throughout the Middle East region.
Data from SoSoValue revealed that US spot Bitcoin ETFs experienced three straight weeks of capital inflows totaling in excess of $2.1 billion. Bernstein attributed these inflows to increasing long-term capital allocations channeled through wealth management firms, institutional investment funds, including pension funds and sovereign wealth funds.
According to Bernstein's analysis, spot BTC ETFs have almost completely reversed their year-to-date (YTD) capital outflows, with net redemptions narrowing to approximately $460 million, when compared against roughly $92 billion in total assets under management (AUM).
Bernstein also highlighted Strategy's ongoing Bitcoin accumulation activity throughout this year.
According to Bernstein's data, Strategy has added 66,231 BTC year-to-date for approximately $5.6 billion at an average acquisition price of around $85,000.
Strategy disclosed on March 9 that it had purchased 17,994 Bitcoin for $1.28 billion during the period spanning March 2 through 8, elevating its total holdings beyond 738,000 BTC, valued at approximately $54 billion.
According to Bitcoin Treasuries data, ETFs and cryptocurrency exchanges collectively hold approximately 1.6 million BTC, valued at more than $117 billion, while publicly traded companies maintain holdings of 1.15 million BTC, worth approximately $84 billion.