Bernstein says the 60% crash in crypto stocks is a rare chance to buy the dip at a 'big' discount

Wall Street broker Bernstein believes that crypto-linked equities are approaching a market bottom as they head into first-quarter earnings reports. The sector has experienced a significant drawdown of approximately 60% from its 2025 highs, creating an opportunity to acquire stakes in major companies at substantial discounts.

Market Conditions and Opportunities

Analysts at Bernstein, led by Gautam Chhugani, noted that a combination of geopolitical factors and temporary weakness in crypto sentiment has led to these significant discounts. While acknowledging that near-term weakness is expected to persist through the first quarter, the firm views current price levels as an attractive entry point for companies with exposure to growing markets such as stablecoins, tokenization, prediction markets, and derivatives.

Market Correction and Valuations

Since peaking in October 2025, the broader crypto market has seen a sharp correction. Bitcoin has fallen by roughly 40%–50% from its record highs near $126,000, and the total digital asset market value has decreased by approximately $2 trillion. This selloff, attributed to macro pressures, regulatory uncertainty, and deleveraging, has significantly impacted crypto-linked equities and shifted market sentiment towards caution entering 2026.

Revised Price Targets and Outlook

Despite the challenging market conditions, Bernstein maintained an optimistic long-term outlook and revised its price targets for several key companies. The firm reiterated its outperform ratings on Coinbase (COIN), Robinhood (HOOD), and Figure (FIGR). However, price targets were adjusted downwards: Coinbase's target was lowered from $440 to $330, Robinhood's from $160 to $130, and Figure's from $72 to $67. At the time of reporting, Coinbase was trading around $165.50, Robinhood at $67.10, and Figure at $31.14.

Bernstein anticipates that a combination of macro uncertainty and subdued crypto sentiment has pressured valuations. However, the firm expects a positive turn as upcoming earnings reports clarify company fundamentals and market sentiment stabilizes throughout the remainder of the year.

Bitcoin Outlook

This assessment follows Bernstein's recent call that bitcoin has likely found its bottom and is positioned for further gains, maintaining its year-end price target of $150,000.