Bitcoin’s Latest Cycle Differs From Past Bear Markets as Institutional, Corporate Buying Limits Declines

JH Kim

Summary

Institutional and corporate buying is helping limit the size of Bitcoin’s declines compared with past cycles.
$59 billion in cumulative net inflows into U.S. spot Bitcoin ETFs and continued corporate Bitcoin accumulation are supporting the market’s downside.
Institutional inflows, broader corporate accumulation, the regulatory environment and ETF fund flows are key variables for Bitcoin volatility and its longer-term price trend.

Forecast Trend Report by Period

Bitcoin’s current market cycle is showing a different pattern from past bear markets, with institutional and corporate buying helping put a floor under declines.

Pierre Rochard of Bitcoin Bond Company told Cointelegraph on May 12 that Bitcoin fell 77% to 85% in the 2015, 2018 and 2022 bear markets, but the correction in the current cycle has been relatively limited.

Cumulative net inflows into U.S. spot Bitcoin exchange-traded funds have exceeded $59 billion, he said.

Ongoing Bitcoin purchases by companies including Strategy are also helping curb the market’s downside.

Some analysts said record highs in the Nasdaq, a U.S. vote on the CLARITY Act and discussions over a strategic Bitcoin reserve are also affecting changes in the market’s structure.

Markets are watching how institutional inflows and expanding corporate accumulation will shape Bitcoin volatility and its longer-term price trajectory. The regulatory environment and ETF fund flows remain key variables.