## Fear, Not Fundamentals, Drives Bitcoin Sell-Off Wall Street asset management firm Bernstein reports that the recent Bitcoin (BTC) sell-off is driven by investor fear of historical price cycles, not a fundamental bear market. According to The Block, Bernstein analysts believe investors who experienced the 2013, 2017, and 2021 peaks are preemptively selling, creating a "self-fulfilling prophecy." ## Shallow Adjustment and Institutional Absorption Unlike past cycles with 60-70% drops, the current decline is only around 25%, suggesting a shallow adjustment. Addresses holding BTC for 6-12 months sold 340,000 BTC, but spot ETFs and BTC-reserving companies absorbed most of this. Institutional holdings in BTC spot ETFs have risen from 20% to 28% since the end of last year. ## Spot ETFs Provide a Buffer Despite recent net outflows, BTC spot ETFs hold $125 billion in assets, providing a significant buffer against selling pressure. Concerns about Strategi selling BTC are unfounded, as management has stated they haven't sold any and have no plans to. ## Buy the Dip? Bernstein suggests this adjustment presents a buying opportunity for both stocks and cryptocurrencies. ```