Bernstein Calls Bitcoin Crash ‘Confidence Crisis,’ Maintains $150,000 Target
Despite the sharp decline in Bitcoin (BTC) prices since last October, Bernstein analysts argue that the current decline is not typical of a typical crypto bear market.
In a a note in a client statement issued on Monday, the firm described the pullback as “Bitcoin’s weakest bear market in its history,” as the stock is down nearly 44% from its all-time high in current trading.
Bernstein Defends Bitcoin’s Fundamentals
Analysis was led by Bernstein’s Gautam Chhugani, who said the recent sell-off reflects a loss of confidence rather than deeper structural problems.
Analysts emphasized that Bitcoin’s fundamentals remain intact and that the decline should not be mistaken for a systemic collapse. Bernstein reaffirmed his long-term outlook, maintaining a $150,000 price target for Bitcoin by the end of 2026.
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Bernstein noted that many of the “red flags” that have historically preceded Bitcoin crashes are not present this time. The commentator asserts that there has never been a greater one institutional collapsethere is no exposure to the hidden rate, and there is no widespread failure throughout the crypto ecosystem.
Instead, the company sees the market weighed down by negative sentiment, as broader conditions appear unusually favorable. Analysts point to what they describe as strong institutional support for Bitcoin.
This includes the pro-Bitcoin president of the US, the continued expansion of spo Bitcoin currency exchange (ETFs), growing acquisitions by corporate treasurers, and continued interest from large asset managers.
In Bernstein’s view, these factors clearly distinguish the current cycle from previous downturns caused by high risk and fragile market structures.
Owners and Miners Can Know Old Weather for Downfall
The company also talked about changing news about technology trends. Bernstein noted that some investors now argue that Bitcoin is irrelevant as the world’s attention turns artificial intelligence (AI).
Analysts have dismissed that idea, saying it reflects a shift in investor focus rather than a real threat to Bitcoin’s role. They added that the fear surrounding quantum computing has similarly intensified, pointing out that such risks will affect all serious digital systems, not just Bitcoin.
The company also downplayed fears of forced sales by stock companies or the appointment of miners. Bernstein said the major companies holding Bitcoin have structured their balance sheets to withstand a prolonged downturn.
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Latest Strategy Commentary revenue callanalysts have noted that only an extreme situation – Bitcoin falling to $ 8,000 and staying there for five years – can cause the need for restructuring.
They added that, miners are also better positioned than in previous cycles. Many have diversified their income by reallocating energy resources to AI data center search, reducing reliance on Bitcoin mining alone and easing production cost pressure.
As of this writing, Bitcoin is trading at $70,627, having recorded losses of 20% and 22% over the past fourteen and thirty days, respectively.
Featured image from OpenArt, chart from TradingView.com
