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Bernstein Gives Bold Bitcoin Bear Market Prediction

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Bitcoin and Gold Performances

Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee and take a step back from the daily price charts. Beneath the noise, some analysts believe Bitcoin’s latest downturn may be telling a very different story—one less about collapse and more about how the market itself is changing.

Crypto News of the Day: Bernstein Maintains $150,000 BTC Prediction

Bitcoin’s latest correction may feel familiar to crypto analysts, but experts at research and brokerage firm Bernstein argue that this cycle is fundamentally different from past downturns.

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In a recent note to clients, the firm described the current environment as the “weakest bitcoin bear case in its history.” In their opinion, the decline reflects a crisis of confidence rather than structural damage to the ecosystem.

The analysts, led by Gautam Chhugani, reiterated a $150,000 Bitcoin price target by the end of 2026, citing:

A Bear Market Without a Crisis

Historically, Bitcoin bear markets have been triggered by systemic failures, hidden leverage, or major bankruptcies. Episodes such as the collapses of large crypto firms in previous cycles exposed structural weaknesses and triggered cascading liquidations.

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Bernstein argues that none of those catalysts are present today. The analysts noted that there have been no major exchange failures, widespread balance sheet stress, or systemic breakdowns across the crypto industry, even as sentiment has deteriorated.

“What we are experiencing is the weakest Bitcoin bear case in its history,” the analysts wrote, adding that the recent sell-off reflects waning confidence rather than problems with Bitcoin’s underlying structure.

They also pointed to strong institutional alignment supporting the market, including spot Bitcoin ETF adoption, growing corporate treasury participation, and continued involvement from major asset managers.

According to the firm, these factors mark a clear departure from earlier cycles dominated by retail speculation and fragile infrastructure.

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In the analysts’ view, the current market narrative is more shaped by sentiment than by fundamentals.

“Nothing blew up, no skeletons will unravel,” they wrote, arguing that concerns ranging from AI competition to quantum computing risks have contributed to a perception-driven downturn rather than a fundamental shift in Bitcoin’s value proposition.

Macro Pressures Drive Relative Weakness

Bernstein also addressed concerns about Bitcoin’s recent underperformance relative to gold during periods of macroeconomic stress.

The analysts said this divergence reflects Bitcoin’s continued behavior as a liquidity-sensitive risk asset rather than a mature safe haven.

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High interest rates and tighter financial conditions have concentrated capital flows into defensive assets such as gold and into high-growth sectors like AI.

In contrast, Bitcoin remains more sensitive to shifts in global liquidity, meaning its recovery could be closely tied to changes in monetary policy and financial conditions.

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The firm expects Bitcoin’s ETF infrastructure and corporate capital-raising channels to play a significant role in absorbing new capital once liquidity conditions ease.

Structural Changes Reduce Downside Risks

Bernstein also dismissed concerns about leveraged corporate Bitcoin holdings and miner capitulation. The analysts noted that major corporate holders have structured liabilities to withstand prolonged downturns.

In one cited example, a large corporate holder, Strategy, would face balance-sheet restructuring only if Bitcoin fell to around $8,000 and remained there for several years.

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Meanwhile, miners have increasingly diversified their revenue streams, including reallocating power capacity toward AI data center demand. This trend, according to the firm, has reduced pressure on mining economics and lowered the risk of forced selling during price declines.

The analysts also acknowledged the long-term risks posed by quantum computing. However, they argue that such threats are not unique to Bitcoin and would affect all critical digital and financial systems. This, the analysts say, is expected to transition to quantum-resistant standards over time.

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Chart of the Day

Bitcoin and Gold Performances
Bitcoin and Gold Performances. Source: TradingView

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Crypto World

BTC Leads Recovery While Altcoin Indicators Hit Cycle Lows

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Cryptocurrencies, Business, Ethereum, Bitcoin Price, Adoption, Markets, Cryptocurrency Exchange, Tokens, Price Analysis, Market Analysis, DeFi, Altcoin Watch

Bitcoin’s (BTC) recent recovery above $71,000 suggests that the price bottom is officially in, and bullish momentum can be seen across the crypto market. TOTAL2, which tracks the market cap of all crypto assets excluding Bitcoin, has held support at its 200-week moving average, but is an altcoin season in the making?

The divergence between Bitcoin’s rally and the muted altcoin price action is beginning to draw attention to altseason indicators, raising the question of whether the broader market may soon follow BTC’s lead.

TOTAL2 tests long-term support just below $1 trillion

The TOTAL2 market cap peaked near $1.7 trillion in October 2025 but currently sits at $970 billion, a drawdown of roughly 43%. The decline accelerated in January after the market cap broke a three-year ascending trendline near $1.15 trillion.

Market attention has now shifted to the higher-timeframe support. On the weekly chart, the TOTAL2 market cap trades close to its 200-week moving average near $900 billion, a level that held during market corrections in September 2024 and April 2025.

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Cryptocurrencies, Business, Ethereum, Bitcoin Price, Adoption, Markets, Cryptocurrency Exchange, Tokens, Price Analysis, Market Analysis, DeFi, Altcoin Watch
Weekly TOTAL2 market cap chart. Source: Cointelegraph/TradingView

The daily chart shows consolidation beneath the former trendline and the $1.1 trillion to $1.25 trillion resistance band, a zone that previously held large liquidity clusters.

The altcoin positioning metrics align with the drop in TOTAL2. CryptoQuant data highlighted that 36.8% of altcoins are trading near their historical lows, excluding Bitcoin, Ether (ETH), and stablecoins.

Cryptocurrencies, Business, Ethereum, Bitcoin Price, Technology, Adoption, Markets, Cryptocurrency Exchange, Price Analysis, Market Analysis, DeFi
Percentage of altcoins near ATL. Source: CryptoQuant

These elevated readings appear when capital concentrates in larger assets. XWIN Research said that spot Bitcoin ETF inflows and the growing number of tokens have intensified competition for liquidity across smaller assets over the past year.

Related: Hyperliquid’s HYPE price will hit $150 by August, predicts Arthur Hayes

Average altcoin performances near cycle lows

Data from CryptoQuant outlined how deeply altcoins have underperformed Bitcoin. The average altcoin trades 44.4% below its 200-day simple moving average (SMA), a level historically seen near bear-phase bottoms.

Cryptocurrencies, Business, Ethereum, Bitcoin Price, Technology, Adoption, Markets, Cryptocurrency Exchange, Price Analysis, Market Analysis, DeFi
Average altcoin and Binance-listed token performance relative to 200D-SMA. Source: CryptoQuant

The exchange data shows similar weakness. Only 4.59% of Binance-listed altcoins trade above their 200-day SMA, confirming a strong Bitcoin-led phase.

The altcoin expansion typically begins with Ether’s (ETH) leadership. The ETH/BTC pair has not established an uptrend and continues to trade inside a descending channel on the weekly chart.

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A move above 0.036 may mark the first break of the channel’s local resistance and signal improving relative strength for ETH. A stronger shift in capital rotation could emerge if the pair reclaims 0.043, a level that previously acted as resistance before the broader decline in 2025.

Cryptocurrencies, Business, Ethereum, Bitcoin Price, Technology, Adoption, Markets, Cryptocurrency Exchange, Price Analysis, Market Analysis, DeFi
ETH/BTC one-week chart. Source: Cointelegraph/TradingView

Until these levels are reclaimed, Bitcoin-led momentum continues to dominate the recovering crypto market.

Market analysts are also debating whether the next altcoin cycle will resemble past rallies. Bitwise Chief Investment Officer Matt Hougan recently said that future altcoin seasons may not lift the entire market equally, arguing that the capital will most likely be concentrated in projects with stronger adoption and real-world applications.

Related: Bitcoin vs gold: ETF flows point to early capital rotation signs