Analysis: BTC's Fluctuations are Controllable During Risk Repricing Cycles; Structural Improvements by 2026 May Prevent a Repeat of 70–80% Plunges

Odaily News Bitfinex's latest report analysis points out that while Bitcoin possesses unique monetary properties, it typically fluctuates alongside 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 instance, the recent synchronous decline of Bitcoin with risk assets reflects investors adjusting their exposure to AI and other assets. Tether CEO Paolo Ardoino noted 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 facing pressure. In 2026, Bitcoin may experience volatility due to shifts in AI sentiment or risk repricing events. However, thanks to increased institutional holdings and improved market structure, it will not see the prolonged price plunges of 70–80% that occurred in past cycles. Bitcoin's long-term resilience and market structure are strengthening, solidifying its position in global asset allocation.