Bitcoin hovers around $71,000, Bernstein analyst says the token has "bottomed out"

On Wednesday, Bitcoin (BTC-USD) fluctuated around $71,000. Previously, Bernstein analysts pointed out that after falling from its all-time high for more than five months, this cryptocurrency might finally be at a bottom.

Bernstein analyst Ghotam Chughani wrote in this week’s report: “Bitcoin appears to have bottomed out.” The firm reaffirmed its target price for Bitcoin by the end of 2026 at $150,000.

Bitcoin outperformed gold and stocks during the Middle East conflict, dropping below $70,000 on Tuesday. Over the past three weeks, Bitcoin has traded within the $65,000 to $75,000 range.

Chughani stated: “We believe Bitcoin has established a bottom and is now beginning an upward trend.”

The outflow of Bitcoin ETF funds that started earlier this year has reversed, with current Bitcoin ETF holdings accounting for about 6.1% of the total supply.

Additionally, digital asset giant MicroStrategy (MSTR) continues to make large purchases. Chughani said that MicroStrategy currently holds about 3.6% of the total Bitcoin supply, making its stock highly attractive for investment.

He added: “We believe that MicroStrategy, with its solid, highly liquid, and stress-tested balance sheet, provides investors with high-beta exposure aligned with Bitcoin’s upward movement.”

Bernstein rates MicroStrategy a “Buy,” with a target price of $450.

Since falling from its record high of $126,000 last October, Wall Street has been cautious about asserting that Bitcoin has bottomed out. This year, Bitcoin has declined by approximately 20% and has closed lower for five consecutive months.

However, since the U.S. and Israel jointly launched an attack on Iran, Bitcoin has gained over 6%; during the same period, gold (GC=F) fell 15%.

On Monday, after President Trump signaled negotiations with Iran and delayed strikes on the country’s energy infrastructure, Bitcoin rebounded along with the broader U.S. stock market.

Fundstrat’s head of digital asset strategy, Sean Farrell, said this rebound is “structurally positive but not yet confirmed.”

He pointed out: “Geopolitical uncertainty remains high, core demand drivers have weakened, and bulls still need to prove the upward logic. Maintain flexible operations and keep cash positions.”

Farrell had previously warned that the market might see a correction in the first half of the year, after which Bitcoin could rebound and potentially rise to $115,000 by the end of the year.