x
Like most cryptocurrencies, Bitcoin (CRYPTO: BTC) has been in a slump to start 2026. Over the first two months of the year, it lost 25%, continuing a downturn that began last October.
Although this hasn't been fun for investors, several firms predict that Bitcoin could bounce back over the rest of the year. Analysts from JPMorgan Chase, in particular, have struck an optimistic tone based on expectations of increased institutional inflows.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need.
The Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in January 2024, leading to heavy institutional investment in the top cryptocurrency. Bitcoin ETFs hold $88 billion worth of Bitcoin, about 6% of the total supply, as of March 3, 2026.
ETF approval significantly expanded who can invest in the leading cryptocurrency. It used to be mainly the territory of retail investors, but because ETFs are regulated investment products, they allow hedge funds, pension funds, and other institutional investors to buy Bitcoin.
Bitcoin ETFs haven't been immune to the recent sell-off. But they logged $787 million in inflows last week, snapping a streak of five straight weeks of outflows. This reversal is a sign that institutional investors are beginning to buy the dip on Bitcoin, which could be the first stages of a sustained recovery.
In a volatile crypto market, Bitcoin is the most resilient option and often the first to bounce back from downturns. ETF approval has given it a level of institutional support that no other cryptocurrency has.
While the SEC has approved spot ETFs for other cryptocurrencies, they aren't nearly as large as those for Bitcoin. Ethereum ETFs rank second, with $13 billion in assets under management (AUM). I expect spot ETFs to help Bitcoin maintain a higher floor than in the past and rebound from its recent losses over the rest of 2026.
Before you buy stock in Bitcoin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $532,066!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,072!*
Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
