Bernstein Says Institutional Inflows Extend Crypto Bull Cycle

Bernstein analysts, led by Gautam Chhugani, wrote in a client note Monday that bitcoin appears stronger as it approaches $80,000 and that recent $60,000 lows mark a clear trough. The note identified steady institutional inflows, wider ETF distribution and Strategy's STRC-driven buying as sources of asymmetric upside and a structurally longer crypto bull cycle.

The firm said asset managers and wirehouses have been making steady purchases and that demand led by exchange-traded funds is broadening bitcoin's ownership base. Bernstein noted roughly 60% of bitcoin supply has not moved in more than a year, which it described as evidence of longer-term holding behavior.

Bernstein flagged Strategy's STRC perpetual preferred product as scaling into a high-yield, low-volatility vehicle that attracts income-focused investors and helps finance additional bitcoin accumulation beyond Strategy's reported 818,334 BTC holdings.

The note added that institutional access has expanded recently, citing new distribution from Morgan Stanley's bitcoin ETF and Charles Schwab's launch of spot bitcoin and ether trading as channels that broaden participation beyond traditional crypto investors.

Stablecoins and tokenized real-world assets were also highlighted. Bernstein reported stablecoin supply at more than $300 billion and said stablecoin usage has increasingly decoupled from short-term crypto price swings. The firm put the tokenized real-world asset market at about $345 billion, up roughly 110% year-over-year, and said platforms such as Hyperliquid are seeing rising activity in onchain equities and commodities trading.

The analysts identified quantum computing as a long-term risk to cryptographic security but described it as manageable given the expected timeline for transition to post-quantum protections. The note said Bernstein expects protocols and infrastructure to have sufficient time to upgrade.

In the note the analysts wrote, “The best days of crypto are ahead which will reflect in a higher and structurally longer crypto bull cycle.”

Financial disclosures in the note stated that Gautam Chhugani holds long positions in various cryptocurrencies and that Bernstein or its affiliates may receive investment banking compensation from Strategy.