Analysts Suggest Crypto Stocks Are Approaching a Bottom
Bernstein analysts suggest that crypto-related stocks may be nearing their lowest point, highlighting a unique opportunity in the market. According to Gautam Chhugani and his team, current geopolitical tensions combined with a temporary decline in crypto sentiment have led to significant discounts on crypto stocks.
Prominent trading platforms like Coinbase (COIN) and Robinhood (HOOD), along with fintech company Figure Technology Solutions (FIGR), have each seen their stock prices tumble approximately 60% from their peak values as cryptocurrencies faced a downturn from last year’s record highs.
Despite the challenging environment, Bernstein has maintained an Outperform rating on these stocks but has revised their price targets in light of anticipated weak performance in the upcoming first-quarter earnings reports, expected in spring. The analysts are optimistic that a bottom for these crypto stocks might be reached as the market digests these earnings results.
Looking ahead, Bernstein predicts that Coinbase could see a 23% increase in earnings per share by 2026, spurred by a surge in stablecoin adoption, the introduction of new products, and an anticipated recovery in the broader cryptocurrency market.
The analysts note that both Robinhood and Figure Technology Solutions exhibit strong resilience, as their revenues are less dependent on cryptocurrency performance. Figure operates exclusively within the blockchain tokenization space, while only 20% of Robinhood’s revenue is linked to crypto trading activities.
Chhugani emphasised the potential these businesses hold, stating that they provide exposure to vast markets—such as prediction markets, stablecoins, tokenised real-world assets, and crypto derivatives—promising substantial growth in the coming years as the sector rebounds from its current state.
