Bernstein: Crypto Market Not At Peak, Sees $80,000 Target

Bernstein, a firm managing over $750 billion in assets, stated that the recent decline in cryptocurrency markets is temporary. Analysts led by Gautam Chugani in a recent report indicated that Bitcoin’s latest 25% drop is not a “cycle peak,” but a “short-term correction.”

The report emphasized that the current situation differs from past Bitcoin sell-offs observed in the fourth quarter of 2017 and 2021. It noted a strengthening foundation within the market. Long-term investor sales have largely been offset by purchases from ETFs and institutions. Over the last six months, older investors have sold 340,000 BTC, totaling $38 billion, while ETFs and treasury companies have made purchases of $34 billion.

“This decline is not a panic sell,” the report stated. Corporate ownership within Bitcoin ETFs has also increased from 20% to 28%. Despite $3 billion in outflows over the last three weeks, the overall trend suggests higher quality and long-term ownership.

Concerns arose regarding Strategy, which holds over 640,000 BTC, amid the recent price decline. Bernstein analysts dismissed these concerns, stating Strategy has no plan to sell Bitcoin. The firm’s debt related to its Bitcoin holdings is only $8 billion, supported by strong treasury income and capital-raising capabilities.

The report framed the current period as part of a multi-year corporate growth trend, rather than a cycle peak. It suggests a potential floor around $80,000, presenting a buying opportunity for long-term investors.

Analysts highlighted that the current downturn does not signify the end of the upward trend, but represents a consolidation phase.

The firm’s analysis focuses on the larger institutional movement and development as a primary driver for the crypto space.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.