Bernstein: bitcoin shows strong resilience

On 8 April, Bernstein said bitcoin's 26% drop in recent market dislocations is mild compared to past 50-70% crashes and shows stronger demand. Market tariffs have hurt crypto miners, but alternatives and AI opportunities in the U.S. provide support.

Bitcoin remains as volatile as tech stocks, not gold, but acts as a liquid risk asset when markets close. Longer term, it is a more volatile, liquid version of gold (market cap ~$2 trillion vs. $20 trillion for gold).

Institutional adoption through ETFs and corporate treasuries (10 per cent of supply) has made Bitcoin more stable. ETF inflows have remained positive despite a 15 per cent drop so far this year. Selling pressure comes mainly from short-term traders, while miners remain strong with AI trading and low debt.