— Bitcoin has shown a remarkable degree of resilience during the recent wave of market volatility, indicating a stronger capital base supporting the asset, according to Bernstein.

While previous crises, including the pandemic and interest rate shocks, caused declines of up to 70%, the current correction of 26% seems modest in comparison.

Gautam Chughani, the chief digital asset analyst at Bernstein, believes that this price stability indicates that Bitcoin is now supported by "more resilient" capital.

Institutional flows through (ETFs) and corporate treasury strategies have helped transform the Bitcoin investor base, reducing the historical reliance on retail flows.

"ETF inflows remain in positive territory at around $770 million year-to-date," notes Chougani, even as Bitcoin has dropped 15% during that time.

This compares to historical periods dominated by retail panic selling and high-leverage miner liquidations, during which the world's leading cryptocurrency fell by as much as 70%.

Choujany believes that Bitcoin is increasingly behaving like a "speculative gold," describing it as a more volatile and liquid version of the precious metal.

Despite its continued correlation with technology stocks during risk-off events, Bitcoin's role as a gauge of risk appetite on weekends is also taking shape, serving as a leading indicator when traditional stock markets are closed.

"We believe that Bitcoin acts as the most accessible and liquid risk market, especially when stock markets are closed," said Chujani.