Bitcoin continued its decline. Why Bernstein considers it "the weakest bear case"

Bernstein analysts said they see no objective reasons for panic in the cryptocurrency market and called the current cryptozyme "the weakest" in the history of bitcoin. According to them, investors are experiencing an artificially created "crisis of confidence" - there are no typical triggers of collapse, and the market relies on the inflow of funds into ETFs, the stability of miners and the loyalty of the U.S. authorities.

The collapse in quotes, which saw the largest cryptocurrency halve in price by the end of last week from its October high, represents "the weakest bear case in the history" of the asset, The Block quoted Bernstein in a research note. The company emphasized that this time around there are no catalysts typical of past downturns: no major bankruptcies, hidden leverage issues or systemic failures have been reported.

The current "bearish" cycle is significantly different from previous ones, Bernstein argued. The analysts cited US President Donald Trump's pro-cryptocurrency stance, the launch of exchange-traded bitcoin funds (ETFs), and the growing participation of corporate cryptocurrency holders and large asset managers as arguments.

Bernstein economists have maintained their prediction of a bitcoin price of $150,000 by the end of 2026. "When all the stars align, the bitcoin community is creating a crisis of confidence for itself. Nothing has exploded, no skeletons [from the closet] will fall out. Yet the media is back to write the obituary again," the analyst firm ironized.

Last Friday, February 6, the price of bitcoin almost fell below $60 thousand. The weekend and Monday were calm: the cryptocurrency fluctuated around $70,000. However, even after the rebound to this level in the crypto derivatives market there were alarming signals: traders continued to take protective positions, ceasing to bet on long-term growth, stated Bloomberg. On February 10, the fall resumed - at the beginning of the European trading session, the rate fell by 2.4%, below $68,700.

After bitcoin, which was falling toward the $60,000 mark, rose in price but then lost momentum, traders discerned in what was happening a classic bearish pattern - a "relief rally" that investors use to exit assets at more favorable prices, Coindesk writes.

"There is still a huge supply in the market from those looking to get out of the first cryptocurrency on a rebound. We have probably only seen an uptick on the way down, which has yet to pass," FxPro chief market analyst Alex Kuptsikevich told the publication.

On February 9, Kaiko analysts noted that despite some sporadic bursts of activity, the general trend remains a steady exodus of players, especially retail players. Kaiko warned: with such a depletion of liquidity, quotations may decline quickly even under moderate pressure from sellers - without large-scale panic selling, which usually signals the formation of the bottom, writes Coindesk.

Richard Farr, chief market strategist and partner at Pivotus Partners, gave a grim outlook on February 4 - his target price for the largest cryptocurrency is now set at zero.

This article was AI-translated and verified by a human editor