Bernstein believes crypto-related equities are approaching a bottom following a steep decline of approximately 60% from their 2025 highs. The brokerage firm made the assessment ahead of first-quarter earnings reports, suggesting the worst of the selloff may be behind the sector. Despite the cautious near-term view, Bernstein maintained a constructive long-term outlook for the industry.
As part of its updated analysis, Bernstein lowered its price targets for several prominent companies in the space, including Coinbase, Robinhood, and Figure. The reductions reflect the significant market drawdown that has weighed on crypto equities in recent months. However, the firm stopped short of abandoning its positive multi-year growth thesis for the sector.
Bernstein pointed to several structural drivers it expects to fuel long-term expansion across the crypto industry. These include the growing adoption of stablecoins, the tokenization of real-world assets, and the continued development of derivatives markets. The firm views these trends as foundational to sustained growth over the coming years.
Stablecoins in particular have emerged as a key area of focus for institutional observers tracking the maturation of digital asset markets. Tokenization, which involves representing traditional assets on blockchain networks, has also attracted increasing attention from both financial institutions and regulators. Bernstein’s emphasis on these themes signals confidence that the underlying infrastructure of the crypto economy continues to develop despite short-term price volatility.
The derivatives segment represents another pillar of Bernstein’s long-term outlook, as more sophisticated financial products become available to a broader range of market participants. The combination of these growth vectors, according to the firm, supports a favorable view of crypto equities beyond the current period of weakness. Investors will be watching upcoming earnings releases closely for signs that fundamentals remain intact amid the broader market pullback.
Originally reported by CoinDesk.
