Analysis: BTC's volatility is controllable during risk repricing cycles; structural improvements in 2026 may prevent a recurrence of 70–80% crashes

Odaily reported that Bitfinex's latest analysis report 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 the 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 has deeper liquidity, greater institutional participation, and regulated investment vehicles (such as spot ETFs), making it more resilient under pressure. In 2026, Bitcoin may experience volatility due to shifts in AI sentiment or risk repricing events. However, increased institutional holdings and improved market structure mean that prolonged price crashes of 70–80% seen in past cycles are unlikely. Bitcoin's long-term resilience and market structure are strengthening, solidifying its position in global asset allocation.