Bernstein: Bitcoin’s Modest Decline Reflects Resilient Demand, Despite Tariff Headwinds
Bitcoin’s relatively mild pullback during the latest bout of macroeconomic turmoil shows a growing maturity in the asset, according to a new report from Wall Street firm Bernstein.
Unlike past crises — such as the COVID-19 crash or aggressive interest rate hikes — which triggered drawdowns of 50–70%, Bitcoin has declined only 26% from its all-time high just three months ago. That restraint signals stronger hands in the market, Bernstein analysts led by Gautam Chhugani said.
“The price action suggests demand from more resilient capital,” the report noted, citing the influence of institutional players.
“Bitcoin’s ‘digital gold’ thesis is strengthening, supported by rising institutional adoption through ETFs and corporate treasury allocations,” Bernstein wrote, highlighting a structural shift in Bitcoin’s investor base.
However, the analysts flagged challenges for U.S.-based miners amid the current geopolitical climate. New tariffs, particularly those affecting the global technology supply chain, are likely to raise costs and weigh on mining operations.
The impact on hardware imports and logistics could pressure mining hashrates — a key measure of industry health and network competition — especially among smaller or less-resourced operators.
Despite these hurdles, larger mining firms such as Riot Platforms (RIOT), IREN (IREN), MARA Holdings (MARA), and CleanSpark (CLSK) may emerge stronger. Bernstein noted that these players benefit from scale, operational efficiency, and exposure to AI-driven infrastructure opportunities, giving them a competitive edge.
