Bitcoin’s Dip: A Short-Term Correction, Not the Start of a Bear Market

Bitcoin recently experienced a decline of approximately 25% from its peak of $126,000 on October 6th. Bernstein analysts classify this as a short-term correction rather than the beginning of a new bear market. They highlight that while investor sentiment may be shifting due to historical concerns about a four-year cycle, current market fundamentals are more robust compared to previous periods. The research team emphasizes that the recent selling by long-term investors amounting to $38 billion worth of Bitcoin has largely been absorbed by spot ETFs and institutional purchases.