Bernstein analysts claim that Bitcoin's recent 25% drop from its peak of around $126,000 is a short-term correction rather than the onset of a major downturn. They attribute this decline to investor anxiety linked to historical four-year cycle patterns, where previous peaks occurred in 2013, 2017, and 2021. This fear led many investors to sell preemptively, creating a self-fulfilling prophecy of decline. Yet Bernstein argues that the current market is fundamentally stronger, suggesting a more shallow correction rather than the deep drawdowns of past cycles. The analysts highlight significant absorption of Bitcoin supply, noting that about 340,000 BTC—worth approximately $38 billion—was sold by long-term holders over the last six months. Inflows into spot ETFs and corporate treasuries have absorbed much of this selling pressure, totaling around $34 billion. They also see strong political support for crypto, potential advancements in market structure legislation, and favorable liquidity conditions as key factors sustaining market confidence. Bernstein believes the market is not at a cycle peak, but in a multi-year trend characterized by institutional involvement and moderate corrections. They're monitoring whether Bitcoin can establish a bottom around $80,000, which could represent an attractive entry point for investors.