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What happened: Bitcoin (BTC-USD) rebounded more than 2% on Monday to hover above $63,000 as the overall market rose following last Friday's steep sell-off.
What's behind the move: The world's largest cryptocurrency was recovering from sharp losses incurred last week, when the token fell below $60,000, more than 50% below its October all-time high.
Over the past month, bitcoin has tumbled roughly 20%, with year-to-date losses exceeding 27%.
What else you need to know: Bernstein analysts noted that bitcoin has seen significant weekly outflows from ETFs in the last four weeks. Furthermore, bitcoin inflows from treasury companies and ETFs year to date stand at around $12 billion, versus $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 don't affect their long-term thesis that the token can be a store of value, or retain its worth over time.
"Bitcoin still may offer some diversification from the unusual singular AI-driven momentum markets we have experienced this year," Chhugani added.
The world's largest cryptocurrency has faced multiple headwinds in recent weeks, including increased ETF outflows and a weakening of sentiment after major holder Strategy (MSTR) sold tokens for the first time since 2022.
