Bitcoin (BTC-USD) rallied nearly 3% on Monday to hover above $63,000 as the overall market rallied after last Friday’s sharp decline.
The world’s largest cryptocurrency has been recovering from heavy losses incurred last week, when the token fell below $60,000, more than 50% below its all-time high in October.
Over the past month, bitcoin has fallen by roughly 20%, extending year-to-date losses to more than 27%.
Analysts at Bernstein noted that bitcoin has seen significant weekly outflows from ETFs over the past four weeks. Furthermore, year-to-date bitcoin inflows from treasury firms and ETFs are around $12 billion, up from $60 billion last year.
But Bernstein’s Gautam Chhugani and his team pointed out that bitcoin tends to be cyclical, writing that the lower inflows do not affect their long-term thesis that the token can be a store of value or retain its value over time, SEEbiz reports.
“Bitcoin can still offer some diversification from the odd AI-driven singular markets we’ve seen this year,” added Gautam Chhugani.
The world’s largest cryptocurrency has faced multiple headwinds in recent weeks, including increased ETF outflows and weakening sentiment after major owner Strategy ( MSTR ) sold tokens for the first time since 2022.
