Analysis: BTC volatility is manageable during the risk repricing cycle; structural enhancements in 2026 may prevent a repeat of the 70-80% crash.

A recent report by Bitfinex analyzes that while Bitcoin possesses unique monetary attributes, it typically fluctuates in tandem with global stock markets and high-growth thematic assets during risk repricing cycles. This is not a judgment on Bitcoin itself, but rather a result of portfolio rebalancing and liquidity management. For example, the recent synchronized decline of Bitcoin with risk assets reflects investors adjusting their exposure to AI and other assets. Tether CEO Paolo Ardoino points out that compared to previous cycles, the Bitcoin market now boasts deeper liquidity, greater institutional participation, and regulated investment vehicles (such as spot ETFs), making it more resilient after pressure. Bitcoin may experience volatility in 2026 due to changes in AI sentiment or risk repricing events, but due to increased institutional holdings and improved market structure, it is unlikely to experience prolonged price crashes of 70-80% as seen in past cycles. Bitcoin's long-term resilience and market structure are strengthening, making its position in global asset allocation more robust.