Bernstein stated that 'the combination of geopolitical factors and temporary weakness in cryptocurrency sentiment is providing a significant discount for cryptocurrency stocks.'
Investment bank Burns stated that cryptocurrency-related stocks may be nearing a bottom.
Bernstein analyst Gautam Chugani and his team wrote in the report, 'The combination of geopolitical factors and temporary cryptocurrency weakness is providing a significant discount for cryptocurrency stocks.'
Trading platforms$Coinbase (COIN.US)$and$Robinhood (HOOD.US)$and fintech companies$Figure Technology Solutions (FIGR.US)$have seen their stock prices drop by approximately 60% from their historical highs.$Bitcoin (BTC.CC)$After surging past $120,000 during the summer and autumn of last year, the current trading price has fallen below $68,000.
Bernstein maintained its 'Outperform' rating on these three cryptocurrency stocks. However, due to anticipated weak first-quarter earnings results expected to be released later this spring, the firm lowered their target prices.
Chugani wrote, 'We believe that as the weak first-quarter earnings reports are released, we will see cryptocurrency stocks bottom out.'
However, analysts expect$Coinbase (COIN.US)$earnings per share to grow by 23% in 2026. They also believe that, given$Robinhood (HOOD.US)$and$Figure (FGRD.US)$revenues are largely decoupled from cryptocurrencies, these two companies demonstrate 'greater resilience.' Figure is a pure blockchain tokenization business, while cryptocurrency-related revenues account for only about 20% of$Robinhood (HOOD.US)$total sales.
Chugani stated, 'In our view, these businesses offer access to a multi-trillion-dollar market with growth expected to continue in the coming years – including prediction markets, stablecoins, real-world asset (RWA) tokenization, cryptocurrency derivatives, and additional beta gains as cryptocurrencies recover from the bottom.'
Bernstein recently predicted a recovery in the cryptocurrency market by 2026 and forecasted that Bitcoin would reach $150,000 by the end of this year.
The outflow of funds from Bitcoin exchange-traded funds (ETFs) observed at the beginning of the year has recently reversed; ETFs currently hold approximately 6.1% of the total Bitcoin supply.
Additionally, digital asset financial giant Strategy (MSTR.US) has been a strong buyer. Chugani noted that Strategy currently holds about 3.6% of the total Bitcoin supply.
Although Bitcoin outperformed other assets during the Iran war, some strategists disagree.
"It is just a risk asset like any other," said Lee Monsen, Chief Investment Officer of Portfolio Wealth Advisors, when discussing cryptocurrencies.
He added that in the event of a broad market downturn triggered by a spike in oil prices, "the idea that any segment of the market could remain unaffected is extremely absurd."
Editor/Melody