Wall Street brokerage firm Bernstein has declared that Bitcoin has likely found its market bottom and is poised for further gains, reiterating its year-end price target of $150,000. In a client note, analysts led by Gautam Chhugani stated, "We believe Bitcoin has found its trough and is now heading higher." At the time of the report, Bitcoin was trading around $71,000.
The firm also maintained its bullish outlook on MicroStrategy (MSTR), describing it as a high-beta proxy for Bitcoin with a "resilient, liquid and pressure-tested" balance sheet. Led by Executive Chairman Michael Saylor, MicroStrategy holds approximately 3.6% of the total Bitcoin supply, valued at about $53.5 billion. Bernstein has an 'outperform' rating on the stock with a $450 price target.
The analysts highlighted growing demand for MicroStrategy's preferred instrument, STRC, which offers an 11.5% monthly dividend with low volatility. The report noted that STRC's perpetual structure helps reduce equity dilution while providing long-term capital, with its trading volumes rising 65% over the past three months.
Bitcoin's recent pullback followed a sharp run-up to record highs in late 2025, with prices falling as much as 45% from the peak. Analysts attributed the decline to a mix of macro pressures, including a higher-for-longer interest rate environment, geopolitical risks in the Middle East, and intermittent outflows from spot Bitcoin ETFs. The unwind of leveraged positions and profit-taking by long-term holders accelerated the decline, triggering forced liquidations and adding to market volatility.
Despite the correction, Bernstein characterized the move as a temporary sentiment reset rather than a breakdown in fundamentals, noting the absence of the systemic stress typical of prior crypto downturns. The analysts pointed out that Bitcoin has outperformed gold by 25% since the onset of the Iran conflict in late February, underscoring its appeal as a portable, censorship-resistant asset during geopolitical stress.
Institutional demand remains a key driver. The broker pointed to resilient ETF flows and increasing participation from banks offering Bitcoin-related financial services. Supporting the bottoming thesis, market indicators like the 30-day implied volatility—tracked by indices such as Deribit's DVOL and Volmex's BVIV—surged to 90% during the February sell-off when Bitcoin neared $60,000. Historically, such spikes in this 'fear gauge' have coincided with peak panic and major market bottoms, as seen in August 2024 and November 2022 during the FTX collapse.
