Strategy has received another Wall Street price target cut after Canaccord lowered its valuation on the company while maintaining that Bitcoin’s long-term investment case remains intact.

Bitcoin outlook remains intact despite lower valuation

According to a research note from Canaccord, the brokerage reduced its price target for Strategy to $130 from $163, citing the company’s prolonged share price decline rather than any change in its long-term view on Bitcoin. The revision comes as Strategy stock has struggled for months, even though the firm said its underlying investment thesis for the cryptocurrency remains unchanged.

Strategy shares closed the previous trading session at $86.93, only slightly above their 52-week low of $81.81 and roughly 77% below where they traded a year ago. The stock later rebounded 8.12% to $93.96 after the company introduced its new Digital Credit Capital Framework.

Canaccord said Bitcoin continues to benefit from limited supply and growing adoption of blockchain technology. The brokerage added that the cryptocurrency has become more established within financial markets and is no longer facing the same uncertainty over whether it should be viewed primarily as a speculative asset or a long-term store of value.

The firm also maintained that Strategy’s Bitcoin-focused corporate model remains workable as long as Bitcoin delivers moderate annual appreciation. At the same time, Canaccord acknowledged that recent market performance has fallen short of those expectations.

“We think there is nothing broken here, either in the company’s model or in bitcoin, which suggests a pendulum swing back makes sense sometime over the medium term.”

Separately, data cited in the report showed Strategy’s Relative Strength Index has moved into oversold territory, while Fair Value analysis suggested the shares could be trading below their estimated intrinsic value.

Capital strategy continues to receive support from analysts

The latest revision follows another recent target cut from TD Cowen, which, as previously reported by crypto.news, lowered its price target on Strategy to $260 from $400 while keeping a “buy” rating. According to TD Cowen, the lower valuation was driven by a more conservative long-term Bitcoin price forecast rather than concerns about Strategy’s newly introduced Digital Credit Capital Framework.

TD Cowen said its revised target still implies roughly 200% upside from current trading levels. The brokerage also described the new capital framework as a constructive step that could improve Strategy’s financial flexibility, even after the stock surrendered part of its initial gains following the announcement.

In a regulatory filing dated June 29, Strategy disclosed that its Digital Credit Capital Framework allows the company to raise up to $1.25 billion through Bitcoin sales if needed. According to the filing, those proceeds may be used to maintain U.S. dollar reserves, fund preferred dividend payments, meet interest obligations, strengthen cash balances, and finance future share repurchases.

The same filing also authorized up to $1 billion in repurchases of the company’s Digital Credit Securities, including STRC, STRF, STRD, and STRK, when management determines buybacks would improve the firm’s capital structure. Strategy further disclosed that it has paused additional Bitcoin purchases while selling about $1.15 billion worth of MSTR shares as part of its capital management plan.

Elsewhere on Wall Street, Cantor Fitzgerald reaffirmed its Overweight rating and $212 price target, citing confidence in Strategy’s liquidity plans. Benchmark also reiterated its Buy rating and maintained its $570 price target, noting that although the company’s preferred shares have weakened in recent months, Strategy has continued adding Bitcoin to its balance sheet.

Ark Invest has a tendency to load up on shares in cryptocurrency companies when their prices are depressed, and June was no exception.

Bitcoin BTC$60,113.53, the largest cryptocurrency, recorded its worst month in four years, and digital asset firms’ share prices suffered accordingly, which Ark read as a buying opportunity.

The St. Petersburg, Florida-based investment manager bought $44 million worth of shares in crypto exchange Coinbase (COIN), based on the closing prices of the days on which purchases were made. It purchased $25.25 million worth of equity in Circle Internet (CRCL), issuer of the world’s second-largest stablecoin USDC, and $8.2 million worth of crypto exchange Bullish (BLSH), the parent company of CoinDesk, according to emailed disclosures.

Shares of Circle slumped 40% in June, ending the month at $62.63. The decline included an 18% drop on June 30 following the debut of rival stablecoin Open USD, which is backed by more than 140 companies, including Coinbase, Stripe, Visa, Mastercard and BlackRock.

COIN ended June just under 20% lower at $146.19, while BLSH fell 27% to $23.43.

The Winklevoss twins have transferred about $67 million worth of Bitcoin and Ethereum to Gemini wallets, with Arkham Intelligence identifying the transactions as matching their usual selling pattern.

According to blockchain analytics firm Arkham Intelligence, Cameron and Tyler Winklevoss moved roughly $60 million in Bitcoin (BTC) and another $7 million in Ethereum (ETH) from custody to hot wallets linked to the Gemini crypto exchange on July 1. Arkham characterized the transfers as consistent with the twins’ previous selloff behavior, although the firm did not confirm that the assets had already been sold.

The latest transfers come as Bitcoin and Ethereum continue trading under pressure following quarter-end selling and persistent weakness in investor sentiment. Recent price declines have also coincided with reduced expectations that the CLARITY Act will pass this year after U.S. President Donald Trump disclosed a $1.4 billion crypto-related windfall, a development some market participants have linked to shifting legislative expectations.

Since accumulating Bitcoin in 2015, the Winklevoss twins have realized about $1.7 billion in profit, according to Arkham Intelligence. Despite the latest transfers, they still control more than $300 million worth of Bitcoin. The July movement also follows earlier transfers to Gemini, including about $67.5 million in Bitcoin during June and another $130 million moved in March.

Bitcoin continues to face selling pressure

Citigroup has turned more cautious on the two largest cryptocurrencies, lowering its 12-month Bitcoin price target to $82,000 from $112,000 while reducing its Ethereum forecast to $2,240 from $3,175.

Bitcoin fell as low as $57,747 over the past 24 hours before recovering to trade near $58,600. Trading volume rose about 9% during the same period, while June recorded roughly $4.5 billion in net outflows from U.S. spot Bitcoin exchange-traded funds, adding to the pressure on market sentiment.

Commenting on current market conditions, crypto analyst Ted Pillows wrote, “Sellers are still dominating, while Coinbase Bitcoin Premium is at its lowest level this cycle.” He added that losing the $57,000-$58,000 support region could expose Bitcoin to a deeper decline toward the $50,000 level.

Ethereum buyers continue accumulating despite weakness

Ethereum has also remained under pressure even as several companies continue adding the asset to their corporate treasuries. As previously reported by crypto.news, quarter-end selling, whale distribution, and weak institutional flows have kept Ether pinned near the $1,500 support area despite ongoing buying from public companies.

Corporate accumulation has nevertheless continued. SharpLink recently disclosed the purchase of another 10,000 ETH at an average price of $1,611, spending about $16.1 million to expand its treasury.

Separately, Bitmine acquired 27,084 ETH over the past week, increasing its holdings to more than 5.7 million ETH. According to crypto.news, those purchases have so far failed to offset continued selling by whales and institutional investors.

Ether was trading around $1,572 at the time of writing, down about 1% over the past 24 hours after moving between an intraday low of $1,549 and a high of $1,600. Trading volume also declined during the session.

Crypto.news reported earlier today that the $1,500-$1,510 region remains Ethereum’s most important support zone. A break below that level would invalidate the current consolidation structure and could open the door to declines toward $1,400 before attention turns to the $1,200 area identified by several market participants.

Edel said it detected and contained the exploit, then paused all of its version-one contracts, which remain frozen, and warned users not to interact with them.

The team added it had traced the attacker’s transactions and is coordinating with exchanges, and that it has offered the attacker a whitehat settlement, a deal that lets a hacker return most of the funds in exchange for a fee and no legal pursuit, within a set window.

No depositor will take a loss, Edel noted, with the team absorbing the bad debt and restoring balances one for one. It is deploying a version two with a redesigned pricing setup meant to block this kind of manipulation, and promised a full technical breakdown to follow.

While the amount is small, the method sits in one of DeFi’s most persistent categories of exploit.

Manipulating the price a protocol reads, rather than breaking into it, ranks as the second most common smart-contract vulnerability in the OWASP Smart Contract Top 10 vulnerabilities for 2025, and security researchers at CertiK describe oracle price manipulation as one of the field’s most common attack vectors.

Alongside cross-chain bridges, which produced the year’s largest single thefts, including the $292 million drained from Kelp DAO in April, price manipulation is where much of the money keeps going, and in most of these, the code works as written.

Key Takeaways

• Shares of SanDisk tumbled 9.44% during Tuesday’s session even as Bank of America issued an optimistic price target increase
• Bank of America elevated its SNDK price objective from $2,100 to $2,500 while reiterating its Buy recommendation
• BofA’s Wamsi Mohan anticipates average selling prices could surge as much as 35%, while bit growth may increase 13% sequentially
• The memory maker has soared 800% in 2024 and an eye-popping 4,755% over the trailing year, reaching a $323 billion market capitalization
• Valuation concerns include a forward price-to-earnings ratio of 33 — exceeding both Nvidia and Micron — alongside troubling technical indicators

SanDisk shares experienced a steep decline on Tuesday, surrendering 9.44% of their value during the trading session. The selloff occurred paradoxically on the very day that Bank of America Securities announced an upward revision to its price target, moving from $2,100 to $2,500.

Sandisk Corporation, SNDK

Bank of America’s equity analyst Wamsi Mohan maintained his Buy recommendation on the shares. His optimistic thesis centers on the persistent mismatch between NAND flash memory supply and demand, a condition he anticipates will persist through 2027.

Mohan’s research indicates SanDisk’s average selling prices could experience gains of up to 35%. Additionally, he projects bit growth — representing the total volume of memory units delivered — will expand by 13% on a sequential quarter basis.

Using these assumptions as a foundation, Bank of America now forecasts that SanDisk will report $9.1 billion in revenue for the June quarter alongside earnings per share of $37.01. These projections exceed the Street’s current consensus estimates of $8.35 billion in revenue and $34.26 in EPS.

For the subsequent quarter, BofA’s model anticipates revenue reaching $11.5 billion with EPS climbing to $48.55.

Multi-Year NAND Supply Deals Enhance Earnings Predictability

A critical element supporting Mohan’s optimistic outlook involves SanDisk’s strategic emphasis on securing long-term NAND supply agreements, referred to as NBMs. These multi-year commitments guarantee future revenue streams and provide greater clarity for investors modeling future profitability.

Bank of America anticipates widespread adoption of these contractual arrangements among cloud infrastructure providers and enterprise clients. The investment bank also highlighted that these agreements are designed to preserve gross margin levels within SanDisk’s established target parameters.

This strategic pivot has contributed significantly to SanDisk’s extraordinary market performance. The stock has skyrocketed 800% since the beginning of the year and an astonishing 4,755% over the past twelve months. This explosive growth has transformed what began as a Western Digital spinoff into a company valued at $323 billion.

The bullish sentiment extends beyond Bank of America. Mizuho Securities increased its target from $1,825 to $2,200. Cantor Fitzgerald established an even higher objective at $2,900. Susquehanna Financial Group represents the most aggressive bull case with a $3,250 price target.

The analyst community’s consensus rating stands at Strong Buy — featuring 14 Buy ratings, two Hold ratings, and zero Sell recommendations over the most recent three-month period. The mean price target across all analysts sits at $1,979.38, suggesting approximately 3% downside from present trading levels.

Growing Concerns About Valuation and Market Dynamics

Notwithstanding the widespread analyst enthusiasm, multiple risk factors deserve consideration — and Tuesday’s sharp decline serves as a cautionary reminder.

SanDisk’s forward price-to-earnings multiple has expanded to 33 times, surpassing Nvidia at 22 times and Micron Technology at 18 times. This valuation premium has begun attracting scrutiny from market participants.

Supply-side dynamics present another concern. Elevated memory pricing could incentivize rival manufacturers including Micron, Kingston Technology, and Kioxia Holdings to accelerate production capacity, which would ultimately exert downward pressure on pricing.

From a technical analysis perspective, the weekly chart reveals a bearish divergence in the Relative Strength Index. The RSI has been declining even as the stock price has continued advancing — a formation that frequently precedes price corrections.

The equity currently trades at $2,238, substantially above its 50-day moving average of $1,458.

Bitcoin has climbed back above $60,000 after Federal Reserve Chair Kevin Warsh declined to signal the direction of future interest rate decisions during an ECB policy discussion.

According to data from crypto.news, Bitcoin (BTC) traded around $60,175 at the time of writing after rebounding about 3% from an intraday low below the key $58,000 level. The move followed comments from Warsh, who again avoided offering forward guidance on monetary policy while reiterating that future decisions will depend on incoming economic data.

Bitcoin rebounds as Warsh avoids policy signals

Speaking during an ECB Forum panel, Warsh declined to say whether the Federal Reserve would raise interest rates at the July Federal Open Market Committee meeting. Instead, he repeated the position he adopted after taking office that the central bank would not pre-commit to future policy moves and would continue responding to economic data as it becomes available.

His remarks came as traders largely continued to expect no change in interest rates later this month. According to CME FedWatch data, markets currently assign a 70.6% probability that the Federal Reserve will leave rates unchanged at the July FOMC meeting.

Warsh also addressed inflation, saying expectations had declined during the first four weeks of the recent period despite concerns tied to the U.S.-Iran conflict. He added that inflation risks had eased while reaffirming the Federal Reserve’s commitment to returning inflation to its 2% target.

As crypto.news reported after the June FOMC meeting, Warsh also left rates unchanged at that gathering. Bitcoin fell to around $65,430 following the decision, while Ethereum traded near $1,770. The Federal Reserve’s updated projections at the time showed that nine policymakers expected at least one rate increase before the end of the year.

Those projections have continued to shape market expectations even after Warsh reiterated at the ECB Forum that future policy decisions would depend on incoming economic data.

Rate hike expectations continue to pressure crypto

Although traders see little chance of a July rate increase, expectations for additional tightening later this year have not disappeared. According to Polymarket data, there is currently a 54% probability that the Federal Reserve will raise interest rates before the end of 2026.

Higher borrowing costs have generally remained a headwind for cryptocurrencies because elevated interest rates tend to support demand for cash and short-term fixed-income assets over riskier investments such as Bitcoin.

Separate reporting by crypto.news also noted that Morgan Stanley expects the Federal Reserve to keep rates unchanged through the rest of the year. The bank nevertheless warned that rate hikes could return if inflation remains persistent or if the unemployment rate falls further.

Outside monetary policy, another source of uncertainty for Bitcoin has come from corporate supply. As previously reported by crypto.news, the possibility that Strategy could sell as much as $1.25 billion worth of Bitcoin has remained one factor contributing to selling pressure in the market.

Political attention has also stayed on Federal Reserve policy. Before Warsh became chair, President Donald Trump repeatedly called for lower interest rates. After the June decision to keep rates unchanged, however, Trump responded without strong criticism and continued to praise the new Fed chair while receiving no timeline for future rate cuts.

The downgrade marks a sharp reversal from Citi’s previous outlook, which assumed passage of U.S. digital asset market structure legislation would spur adoption among financial advisors and traditional investors. The bank now believes that timeline has slipped, leaving the market without a meaningful catalyst.

Saunders said ETF flows continue to be the main force behind crypto prices, with recent demand turning negative as investors pulled back from risk.

According to the bank’s analyst, sentiment has also been hurt by concerns that digital asset treasury (DAT) companies could become net sellers of bitcoin. Recent corporate actions by Strategy amplified those fears despite involving relatively modest BTC sales.

The report noted that bitcoin and ether both remain below key technical levels, including their 200-day moving averages, while speculative capital has shifted toward AI-related investments.

The bank’s revised forecasts assume flat ETF flows in its base case. In its bull case, stronger retail and institutional adoption lifts bitcoin to $108,000 and ether to $2,932. Its bear case, based on recessionary macro conditions and continued ETF outflows, sees BTC falling to $53,000 and ETH to $1,094.

While the bank’s equity strategists have become more constructive on U.S. stocks, providing some support through crypto’s equity correlation, the report said that positive macro factors are insufficient to offset weakening flows.

A new independent non-profit, Ethereum Institutional, has launched with the goal of accelerating institutional adoption of Ethereum, its layer-2 networks and the broader ecosystem.

The organization is led by David Walsh, Marius Smith and Matthew Dawson. Walsh previously led the Ethereum Foundation’s enterprise efforts, while the organization said its leadership brings experience spanning institutional engagement, capital markets and Ethereum ecosystem development. It said its mission is to provide institutions with a neutral, independent point of contact as they evaluate Ethereum for tokenization, stablecoins and other onchain financial infrastructure.

In announcing the initiative on X, Ethereum Institutional said institutions need “a credible, independent front door” to the Ethereum ecosystem. While Ethereum’s neutrality is one of its defining strengths, the group argued, that neutrality has often left enterprises without a clear organization to engage as they make long-term infrastructure decisions.

The launch comes as the Ethereum Foundation continues to narrow its role to stewarding the core protocol, with ecosystem participants increasingly spinning up independent organizations focused on specific areas such as business development, institutional outreach and developer support. The shift follows broader changes at the foundation, including leadership restructuring and longstanding community calls for greater transparency.

Investment bank Standard Chartered has initiated coverage of Morpho, calling the lending protocol a dual-play on decentralized finance (DeFi) that combines a lending market with infrastructure for onchain banks and asset managers.

The bank has a $60 price target for MORPHO by the end of 2030, implying roughly 33x upside from its current price. This would see the token outperform both bitcoin BTC$59,990.05 and ether (ETH) over the same period.

MORPHO was more than 13% higher over 24 hours, trading around $2.13 at publication time.

“Given its status as one of the largest DeFi lending protocols and its comfortable financial position (it just raised $175 million in VC funding), we think Morpho can scale to meet the expanding base of assets deployed in DeFi,” wrote Geoff Kendrick, head of digital assets research at Standard Chartered, in the Wednesday report.

Decentralized finance has rebounded sharply over the past year as institutional interest in tokenized real-world assets and onchain lending accelerated. Lending protocols have benefited from rising stablecoin adoption and renewed demand for crypto credit, while infrastructure providers that enable asset managers and financial institutions to deploy capital onchain have emerged as one of the sector’s fastest-growing segments.