Bitcoins The recent weakness is driven by softer capital flows rather than concerns over quantum computers or other risks, according to Wall Street brokerage Bernstein.
Growing concerns that future quantum computers could eventually break the cryptography that underpins Bitcoin has become a recurring theme in the crypto markets, especially after recent research from Google suggested that the computational resources needed to crack key blockchain security systems may be far lower than previously thought.
Bitcoin tax companies and exchange-traded funds (ETFs) have attracted about $12 billion in inflows this year, down sharply from $60 billion in 2025, the broker said. ETFs have seen about $2.6 billion of net outflows from a $75 billion asset base, with most new demand coming from corporate buyers led by Strategy ( MSTR ).
Bernstein analysts attributed the slowdown mainly to retail investors chasing AI-related opportunities, noting that the strongest performing areas of crypto this year have been tied to tokenized stocks and commodities.
“Bitcoin may still offer some diversification from the unusual one-off AI-driven momentum markets we’ve seen this year,” analysts led by Gautam Chhugani wrote in Monday’s report.
Still, analysts view the modest volume of ETF outflows as encouraging, arguing that bitcoin ownership is becoming less dependent on momentum-driven retail flows.
Bitcoin has gone through a difficult stretch in recent months, falling from approx. $82,000 in early May to around $63,000 today, a drop of more than 20%. The cryptocurrency briefly dipped below $60,000 last week, its lowest level since October 2024, and remains about 50% below its October 2025 all-time high near $126,000.
Sustained ETF outflows, weakening investor risk appetite and a shift in capital towards AI-related stocks and high-profile IPOs have been cited as key factors behind the decline.
Unlike previous cycles dominated by retail traders, today’s market includes ETFs, corporate government bonds, asset management platforms, pension funds and sovereign investors, creating a more diversified and robust ownership base, the analysts argued.
While bitcoin has lacked the excitement of AI trades this year, Bernstein argued that “being boring” does not weaken its long-term store of value thesis and may ultimately reflect a healthier market structure.
Spot bitcoin ETF flows explain about 45% of weekly BTC price movements and remain the best measure of investor adoption, Citi said in a report last week.
The world’s largest cryptocurrency was trading around $62,600 at the time of publication.
Read more: Bitcoin’s lack of fresh investors matters more than Strategy’s sales, Citi says
