Bitwise: Bitcoin’s floor rises amid AI boom, regulatory delays

Bitwise, the crypto asset manager, reports in its latest analysis that bitcoin’s baseline support level has been rising even as investment flows into artificial intelligence stocks increase and some regulators delay crypto rules.

The report identifies steady flows into bitcoin investment products, longer holding periods by retail and institutional owners, and declining exchange balances as factors that reduce available sell-side supply and raise a conservative support level for the asset.

On-chain indicators cited include measures tied to holder cost basis, realized price and the share of supply that has not moved for extended periods. The analysis also highlights ongoing outflows from exchange wallets and continued demand for regulated crypto investment vehicles as signs of tighter selling liquidity.

The report examines miner economics and network fundamentals. It describes changes in where miners sell rewards, how miners manage inventory, and recent network upgrades and usage trends as elements that affect market supply dynamics.

Bitwise places these findings alongside broader market trends. While capital has flowed to AI-focused equities this year, the analysis indicates steady demand persists from certain institutional buyers and self-directed investors. The report also notes that incomplete regulatory frameworks in some jurisdictions continue to create uncertainty for market participants.

The analysis defines the “floor” as a conservative estimate of support based on historical holder cost and on-chain supply concentrations rather than as a short-term price target. The report recommends using on-chain data alongside traditional market indicators when evaluating potential downside exposure.