Bitcoin may have reached a pivotal low point, marking a significant moment more than five months after its decline from all-time highs, analysts from Bernstein suggest. In a recent note, analyst Gautam Chhugani stated, “Bitcoin looks bottomed,” reaffirming the firm’s ambitious price target of $150,000 by the end of 2026.
As of Tuesday, Bitcoin was trading below $70,000, continuing a pattern of oscillating between $65,000 and $75,000 over the past three weeks. Chhugani expressed optimism, stating, “We believe Bitcoin has found its trough and is now heading higher.” This perspective comes as investment products such as Bitcoin exchange-traded funds (ETFs) recover from earlier outflows, now holding approximately 6.1% of the total Bitcoin supply.
Additionally, the digital asset Treasury firm, MicroStrategy (MSTR), has positioned itself as a robust buyer in the current market. The company currently holds about 3.6% of the total Bitcoin supply, prompting Chhugani to note that MicroStrategy presents a compelling investment opportunity, offering high-beta exposure to Bitcoin’s upside, bolstered by a resilient balance sheet. Bernstein has assigned a Buy rating on MicroStrategy with a target price of $450.
Despite some renewed confidence, Wall Street has maintained a cautious stance regarding Bitcoin’s recovery after it fell from its peak of $126,000 in October, with the token down approximately 20% year to date and facing losses for five consecutive months. However, since the onset of the US-Israel conflict with Iran, Bitcoin’s value has increased by more than 6%, in stark contrast to gold, which has seen a 15% decline during the same period.
The recent uptick in Bitcoin’s value coincided with broader stock market gains following statements from President Trump regarding potential discussions with Iran, delaying military actions against the country’s infrastructure. Nonetheless, Fundstrat’s head of digital asset strategy, Sean Farrell, described the rebound as “constructive but lacks confirmation.” He cautioned that with geopolitical uncertainties remaining high and demand indicators softening, the onus remains on the bulls. Farrell also advised keeping a flexible approach and maintaining liquidity.
Looking ahead, he has suggested that while a potential drawdown is expected in the first half of the year, a rally could elevate Bitcoin’s price to $115,000 by year-end.
