Bitcoin sinks below $70,000 as Bernstein analysts say token ‘looks bottomed’
Five months after falling from all-time highs, Bitcoin (BTC-USD) may have finally hit a low point, according to Bernstein analysts.
“Bitcoin appears to be bottoming out,” Bernstein analyst Gautam Chhugani said in a note on Monday. The firm reaffirmed its $150.00 price target for late 2026.
The token, which has outperformed gold and stocks during the Middle East conflict, was trading below $70,000 on Tuesday. Overall, Bitcoin has been trading between $65,000 and $75,000 for the past three weeks.
“We believe Bitcoin has found its bottom and is now heading higher,” Chhugani said.
Outflows from Bitcoin exchange-traded funds seen at the beginning of the year have reversed, and today ETFs hold approximately 6.1% of the total supply.
Additionally, digital asset Treasury giant Strategy (MSTR) acted as a strong buyer. Strategy currently holds roughly 3.6% of the entire supply, making the stock an attractive buy, Chhugani said.
“We believe MSTR offers high beta exposure to Bitcoin backed by a flexible, liquid and pressure-tested balance sheet.”
Bernstein has a Buy rating on the Strategy with a $450 price target.
Read more about Bitcoin’s movements and today’s market action.
Wall Street has been wary of a bottom after Bitcoin fell from a record high of $126,000 in October. Bitcoin is down nearly 20% to date.
The token has posted losses for five consecutive months. However, the token has increased by more than 6% since the start of the US-Israeli war with Iran. In the same time period, gold (GC=F) fell 15%.
On Monday, the token rose along with the rest of the stock market after President Trump signaled negotiations with Iran and postponed attacks on the country’s energy infrastructure.
Sean Farrell, head of digital asset strategy at Fundstrat, said the jump was “constructive but lacked confirmation.”
“With geopolitical uncertainty still high and fundamental demand drivers softening, the burden of proof remains on the bulls,” he said. “Stay agile and maintain dry powder.”
Farrell warned of a decline in the first half of the year, followed by a rally that took the token to $115,000 by the end of the year.
Ines Ferre is Yahoo Finance’s senior business reporter. Follow him on X @ines_ferre.
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