Bitcoin BTC$70,957.35 has likely found its bottom and is primed for further gains, Wall Street broker Bernstein said in a Tuesday note to clients, reiterating its $150,000 year-end price target.
"We believe Bitcoin has found its trough and is now heading higher," wrote analysts led by Gautam Chhugani. The world's largest cryptocurrency was trading around $71,000 at publication time.
The broker also maintained its bullish view on bitcoin treasury company Strategy (MSTR), calling it a high-beta proxy for bitcoin with a “resilient, liquid and pressure-tested” balance sheet. The firm, led by Executive Chairman Michael Saylor, holds roughly 3.6% of the total bitcoin supply, worth about $53.5 billion.
Bernstein has an outperform rating on Strategy with a $450 price target. The shares were unchanged in early trading, around $138.10.
The analysts also highlighted growing demand for Strategy’s preferred instrument, STRC, which offers an 11.5% monthly dividend with low volatility.
STRC’s perpetual structure helps reduce equity dilution while providing long-term capital, with trading volumes rising 65% over the past three months, the report noted.
Bitcoin’s recent pullback comes after a sharp run-up to record highs in late 2025, with prices falling as much as 45% from the peak amid a mix of macro and market-driven pressures. Analysts point to a higher-for-longer interest rate backdrop, geopolitical risk tied to the Middle East and intermittent exchange-traded fund (ETF) outflows weighing on risk appetite.
The unwind of leveraged positions and profit-taking by long-term holders accelerated the decline, triggering bouts of forced liquidations and adding to volatility.
Despite the scale of the correction, Bernstein analysts characterized the move as a temporary reset in sentiment rather than a breakdown in fundamentals, noting the absence of systemic stress typically seen in prior crypto downturns.
On the macro side, the analysts noted bitcoin has outperformed gold by 25% since the onset of the Iran conflict at the end of February, underscoring the cryptocurrency's appeal as a portable, censorship-resistant asset during periods of geopolitical stress.
Institutional demand remains a key driver. The broker pointed to resilient ETF flows and increasing participation from banks offering bitcoin-related financial services.
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