Analysts Warn of Potential Bitcoin Retreat to $60K Amid Market Correction, Eye Long-Term Institutional Shift
For cryptocurrency investors, weekends have become a source of anxiety rather than respite. A single regulatory comment or a large market move can swiftly erase gains, as witnessed last week when Bitcoin tumbled toward the $74,000 mark—a sharp decline from its all-time highs.
At press time, Bitcoin was trading at $78,244.45, but analysts are now warning that the flagship cryptocurrency could test deeper support levels. In a client note, brokerage and research firm Bernstein suggested Bitcoin may find a floor around $60,000 in the coming months, a level that coincides with its previous cycle peak, before establishing a stronger foundation for recovery.
The recent volatility highlights a broader narrative shift. Bernstein framed the pullback within the context of Bitcoin's relative underperformance against gold, as central banks in China, India, and elsewhere accelerate historic accumulation of bullion. This has pushed gold's share of global reserves toward an estimated 29% by late 2025, while Bitcoin's market capitalization has slipped to just 4% of gold's—a two-year low.
Despite this gap, the past two years have undeniably marked Bitcoin's institutional phase. The explosive growth of U.S. spot Bitcoin ETFs, which now manage approximately $165 billion in assets, alongside sustained accumulation by corporate treasuries like MicroStrategy (NASDAQ: MSTR)—which has added nearly $3.8 billion in BTC year-to-date—signals a structural change from earlier retail-driven cycles.
"This isn't 2022 again," said Bernstein in its analysis. "We see limited ETF outflows and no signs of miner capitulation on the scale of past downturns. Miners are diversifying into AI data centers, and institutional flows remain resilient."
The firm pointed to potential U.S. policy shifts as a future catalyst, including discussions around a "Strategic Bitcoin Reserve" using seized assets and potential leadership changes at the Federal Reserve that could foster a more crypto-friendly stance.
Bernstein concluded that current weakness likely represents a late-stage correction within an ongoing bull market, setting the stage for what could become Bitcoin's "most consequential cycle"—one with implications extending beyond its traditional four-year pattern. The analysts project a market recovery could solidify in the latter half of 2026.
Reader Reactions:
David Chen, Portfolio Manager at Horizon Digital Assets: "Bernstein's take is measured. The $60K support level is technically sound, and the institutional narrative remains intact. This is healthy consolidation after a parabolic move."
Rebecca Vance, Independent Crypto Trader: "It's exhausting. Every weekend brings a new panic. They say 'institutional adoption' but then warn of a 25% drop. Which is it? The market feels manipulated, and retail is always the last to know."
Arjun Mehta, Fintech Analyst at Cedar Grove Research: "The gold versus Bitcoin comparison is critical. Central bank demand is a real headwind short-term, but it also validates digital scarcity as a monetary concept. Long-term, the trajectories will converge."
This story was originally published by TheStreet on Feb 2, 2026. Add TheStreet as a Preferred Source by clicking here.