Crypto Stocks Near Bottom After 60% Selloff

Crypto stocks near bottom selloff, with a potential "big discount" entry point, according to Wall Street broker Bernstein. The firm sees a cyclical bottom after a steep ~60% drawdown from 2025 highs.

Crypto Market Correction and Valuations

The combination of macro uncertainty, geopolitical tension, and weak crypto sentiment has pressured valuations across the sector. Despite this, fundamentals tied to long-term growth themes remain intact. Bernstein estimates crypto equities have retraced roughly 60% from their 2025 peak, alongside a broader crypto market correction that erased trillions in value.

Structural Growth Drivers

Structural growth drivers include stablecoins, tokenization, prediction markets, and derivatives. These drivers are expected to support long-term growth in the crypto sector.

Crypto Stocks and Price Targets

Bernstein lowered price targets across major names, including Coinbase to $330 from $440, Robinhood to $130 from $160, and Figure to $67 from $72. All three remain rated Outperform.

Crypto Sentiment and Geopolitics

Crypto sentiment has been driven by escalating tensions in the Middle East, with the conflict between Iran and Israel intensifying. U.S. President Donald Trump has alternated between diplomatic signals and severe threats toward Iran's energy infrastructure.

Derivatives Positioning and Volatility

Derivatives positioning has also contributed to muted volatility, with institutional investors selling covered call options and shifting gamma exposure to market makers.

Key Takeaways

• Crypto stocks are near a bottom after a 60% selloff, presenting a potential "big discount" entry point.
• Structural growth drivers, including stablecoins and tokenization, support long-term growth in the crypto sector.
• Bernstein estimates crypto equities have retraced roughly 60% from their 2025 peak.
• Crypto sentiment is driven by geopolitics and derivatives positioning.

Frequently Asked Questions

What is the current state of crypto stocks?

Crypto stocks are near a bottom after a 60% selloff, with a potential "big discount" entry point, according to Wall Street broker Bernstein.

What are the structural growth drivers in the crypto sector?

Structural growth drivers include stablecoins, tokenization, prediction markets, and derivatives, which are expected to support long-term growth in the crypto sector.