Wall Street Firm Bernstein Highlights Bitcoin’s Impressive Performance During Market Turmoil

Bernstein: Bitcoin’s Limited Drawdown Signals Stronger Market Foundation

Bitcoin’s performance during the latest round of global market turmoil suggests a notable shift in market dynamics, according to analysts at Bernstein. Despite macro headwinds — including sweeping tariffs that rattled equities and commodities — the world’s largest cryptocurrency has held relatively firm, falling just 26% from its mid-January peak.

This resilience is a stark contrast to previous market disruptions. “In past crises like the pandemic crash or aggressive monetary tightening cycles, Bitcoin typically experienced 50% to 70% drawdowns,” Bernstein analysts led by Gautam Chhugani noted in a Tuesday report.

The reduced volatility, they argue, is a result of increasing participation from institutional investors. With ETF flows accelerating and more companies adding BTC to their treasuries, Bitcoin is evolving from a speculative asset to a macro hedge — a digital form of gold.

However, Bernstein also highlighted risks in the mining sector. New tariffs could strain the global supply chain for mining equipment, potentially reducing hashrate across North American miners.

This may work to the advantage of larger mining firms like Riot Platforms (RIOT), Iris Energy (IREN), Marathon Digital (MARA), and CleanSpark (CLSK), which have both scale and advanced AI integration to weather the storm and consolidate market share.

“Tariffs are a headwind, but the long-term structure of the Bitcoin market appears stronger than ever,” the report concluded.

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