VECStake Live - Bernstein Says Bitcoin Bull Run Extended by Institutional Demand and Stablecoins

 April 29, 2026 | VECS News

Research and brokerage firm Bernstein has released a comprehensive analysis indicating that the cryptocurrency market is experiencing a fundamental structural strengthening that could extend the current Bitcoin bull cycle beyond traditional patterns. In their latest report covered by The Block, Bernstein analysts led by Gautam Chhugani stated that Bitcoin's recent pullback to approximately 60,000 has formed a clear bottom, with prices now approaching 80,000 driven by sustained institutional buying pressure . This assessment marks a significant departure from cyclical market predictions, instead pointing toward what the firm describes as a "longer-term structural bull market" .

Multiple institutional channels have matured in ways that fundamentally alter market dynamics. Morgan Stanley has launched its Bitcoin ETF offering, while Charles Schwab has introduced a spot Bitcoin and Ethereum trading platform, dramatically expanding access for traditional investors who previously lacked regulated entry points into the crypto market . According to Bernstein, approximately 60% of the total Bitcoin supply has not moved from its wallet addresses for more than one year, indicating a stable and committed long-term holder base that reduces sell-side pressure during market fluctuations . This holder structure contrasts sharply with previous cycles where higher velocity of existing coins contributed to sharper drawdowns.

Perhaps the most transformative development cited by Bernstein is the unprecedented growth of stablecoin infrastructure. Total stablecoin supply has now surpassed 300 billion, reaching as high as 320 billion according to recent data, with annual transaction volume hitting $33 trillion . What makes this growth particularly significant is its decoupling from cryptocurrency price cycles. Unlike previous eras where stablecoin supply expanded and contracted with speculative trading volumes, current stablecoin demand reflects genuine growth in real-world payment and settlement applications, cross-border transfers, and corporate treasury management . This decoupling suggests that blockchain-based financial infrastructure is gaining independent utility value.

For cryptocurrency investors, Bernstein's analysis carries substantial implications for portfolio strategy and asset allocation. The firm highlights that Strategy (formerly MicroStrategy) continues its aggressive accumulation through the STRC perpetual preferred stock product, which has attracted income-focused institutional investors. Strategy's current Bitcoin holdings have reached 818,334 BTC, representing consistent demand equivalent to two to three times Bitcoin's daily mining issuance rate . This sustained institutional bid, combined with spot Bitcoin ETFs that have accumulated over $165 billion in assets within 21 months—the fastest ramp in ETF history—creates demand pressure that did not exist in previous market cycles .

The tokenization of real-world assets represents another structural pillar supporting Bernstein's extended bull thesis. Assets including private credit instruments and government bonds have reached a tokenized value of 345 billion, representing a year-over-year increase of 110% [citation:1][citation:6]. This growth indicates that blockchain technology is moving beyond cryptocurrency-native applications into mainstream financial infrastructure. Investors holding stablecoins or crypto investment instruments should note that tokenization creates additional demand for blockchain network usage and may increase the utility value of base layer assets. According to CoinFound's research, the stablecoin sector has cumulatively attracted 7.9 billion in institutional funding, with venture capital investment growing at an annualized rate of 44% .

The traditional four-year Bitcoin cycle narrative is simultaneously breaking down according to multiple analysts. Matt Crosby, lead analyst at Bitcoin Magazine Pro, argues that traders relying on Bitcoin's halving-driven four-year cycle may be leaning on a framework that no longer fits the market . With over 95% of Bitcoin's total supply already issued, the relative shock value of each new halving diminishes. Crosby notes that Strategy alone has been acquiring more than 1,000 BTC per day, roughly two to three times Bitcoin's daily inflation rate, while spot ETFs have recorded single-day purchases approaching $750 million . This persistent institutional demand is materially different from the market structure observed in earlier cycles, where retail speculation dominated price discovery.

The regulatory landscape has also shifted decisively in favor of institutional participation. The GENIUS Act passed in the United States established a federal framework for stablecoin regulation, mandating 1:1 liquid reserves and federal oversight, which has effectively de-risked stablecoins for over 1,600 local banks now integrating blockchain rails into their operations . The European Union's MiCA framework has been fully implemented, providing similar clarity across European markets. According to Ripple's survey of over 1,000 global finance leaders, 72% said not providing a digital-asset solution would put an institution at a competitive disadvantage, while EY-Parthenon research found that 75% believe they need to advance digital-asset activity within two years or risk falling behind . This regulatory clarity is driving planned allocation increases, with 73% of institutions planning to increase digital-asset allocations in 2026.

Looking ahead, Bernstein acknowledges that quantum computing represents a long-term potential risk to blockchain security, but expects the ecosystem will have sufficient time to complete the transition to post-quantum security protocols . For investors, the key implication is that cryptocurrency markets are evolving from speculative, retail-driven cycles toward institutionally anchored, utility-driven growth. The structural bull market Bernstein describes is not based on price momentum or technical indicators alone, but on fundamental changes in market composition, regulatory acceptance, and real-world use cases. As stablecoins continue to expand their role in global payments and tokenization accelerates across asset classes, the investment thesis for digital assets increasingly resembles that of traditional financial infrastructure rather than speculative technology bets.