Retail investors are increasingly turning their attention toward AI stocks, leading analysts at Bernstein to claim that the declining interest in Bitcoin may actually signal a healthier, more institutionally stable market. While Bitcoin has seen a significant downturn, with a 27% drop so far in 2026, Bernstein suggests this downturn reflects not a structural decline but rather a shift in investor behavior.
In their latest report, Bernstein’s Global Digital Assets team highlighted a dramatic decline in capital flowing into Bitcoin this year. Net inflows from exchange-traded funds and corporate treasury buyers have plummeted to approximately $12 billion year-to-date, a stark decrease from $60 billion throughout 2025, marking an 80% drop. Furthermore, Bitcoin ETFs recorded net outflows of $2.6 billion from a total asset base of $75 billion, pointing to a significant change in investment dynamics.
Despite this retreat, analysts frame the situation as a positive development. They argue that retail investors have mostly shifted their focus to AI-related stocks, resulting in a holder base for Bitcoin that is increasingly dominated by institutional investors, including pension funds, sovereign wealth funds, and corporate treasury buyers. This, they contend, creates a more stable market environment, replacing the speculative interest that characterized previous Bitcoin cycles.
In terms of institutional activity, the software company Strategy has maintained its aggressive accumulation of Bitcoin. This year, it raised $7.5 billion through its preferred stock instrument (STRC), using the funds to purchase around 100,000 Bitcoin, bringing its total holdings to more than 845,000 BTC, valued at approximately $53.6 billion.
Currently, the broader cryptocurrency market capitalization stands at around $2.25 trillion, which remains a small fraction compared to global equity and commodity markets, the primary focus for investors in this current cycle. Notably, several Bitcoin mining companies, such as IREN and Cipher Digital, have begun pivoting their operations toward AI data centers, achieving considerable gains as a result.
Though Bitcoin is trading just above $63,000—down almost 50% from its peak in October—Bernstein has maintained its long-term price target of $150,000 by the year’s end. This optimistic outlook comes amid a turbulent market, as the analysts believe that Bitcoin’s current lack of retail momentum could be beneficial. They argue that the minimal retail activity should not detract from its value as a long-term “store of value.”
In their analysis, Bernstein emphasizes that a quieter Bitcoin market shouldn’t be viewed negatively, rather, it highlights the maturation phase that the cryptocurrency is undergoing.
