Wall Street brokerage Bernstein declares Bitcoin has reached its price bottom, maintaining a bullish year-end projection of $150,000. Analysts cite recovering exchange-traded fund flows and sustained corporate treasury accumulation as key drivers for the anticipated rebound. This assessment comes as the leading cryptocurrency trades near $71,000 following a significant correction earlier this month.
Gautam Chhugani led the firm in writing the report, stating that Bitcoin has found its trough and is now heading higher. The broker maintains a positive outlook on Strategy, the publicly traded bitcoin treasury company, calling it a high-beta proxy for the asset. Strategy shares remained unchanged in early trading sessions, hovering around $138.10 per share during the initial market open.
Strategy currently holds approximately 3.6% of the total bitcoin supply, representing a value of roughly $53.5 billion in current market terms. The firm highlighted growing interest in Strategy preferred equity instrument, STRC, which offers an 11.5% monthly dividend with low volatility. Trading volumes for this instrument have risen 65% over the past three months, signaling strong investor confidence.
The recent price decline followed a sharp run-up to record highs in late 2025, dropping as much as 45% from the peak amid macro pressures. Analysts point to a higher-for-longer interest rate backdrop and geopolitical risk tied to the Middle East weighing on broader risk appetite. The unwind of leveraged positions and profit-taking by long-term holders accelerated the decline, triggering bouts of forced liquidations.
Bernstein analysts characterized the move as a temporary reset in sentiment rather than a breakdown in fundamental market structures. They noted the absence of systemic stress typically seen in prior crypto downturns during this specific period of correction. On the macro side, analysts noted Bitcoin has outperformed gold by 25% since the onset of the Iran conflict at the end of February.
Institutional demand remains a key driver for the asset class, according to the broker’s detailed market analysis released this week. The firm pointed to resilient ETF flows and increasing participation from banks offering bitcoin-related financial services as evidence of maturation. This institutional support creates a more stable floor for price action compared to retail-driven cycles observed in previous years.
Meanwhile, regulatory uncertainty continues to impact the broader digital asset ecosystem, exemplified by recent moves against stablecoin issuers. Circle shares fell as much as 18% after a draft of the U.S. Clarity Act raised the prospect of strict limits on stablecoin yield. The proposed legislation would bar rewards on passive stablecoin balances and ban structures economically equivalent to interest.
Bernstein concludes that despite regulatory headwinds, the fundamental case for Bitcoin remains intact for the remainder of the year. Investors should watch for continued ETF inflows and the impact of the Clarity Act on stablecoin utilities in the coming months. The firm expects volatility to persist but maintains its conviction on the long-term appreciation trajectory for the leading digital asset.
