Crypto stocks may be nearing a bottom, say Bernstein analysts.
“The combination of geopolitics and temporary crypto weak sentiment is offering big discounts” on crypto stocks, Bernstein’s Gautam Chhugani and his team wrote.
Shares of trading platforms Coinbase (COIN) and Robinhood (HOOD), as well as fintech Figure Technology Solutions (FIGR), have all fallen roughly 60% from their all-time highs as cryptocurrencies have slid from last year’s record levels.
Bernstein maintained an Outperform rating on the three stocks while lowering their price targets on expectations of weak first quarter results later this spring.
“We believe, we will see a bottom in crypto stocks into weak Q1 earnings,” the team wrote.
The analysts expect Coinbase’s earnings per share to grow by 23% in 2026, driven by a stablecoin boom, new product launches, and an expected crypto recovery.
They also see “stronger resilience,” particularly in Robinhood and Figure, given that their revenues are largely unlinked to crypto. Figure is a pure-play blockchain tokenization business, while crypto-linked revenue makes up only about 20% of Robinhood’s revenue.
“In our view, these businesses offer exposure to trillion dollar markets with years of growth ahead – prediction markets, stablecoins, tokenized real world assets, crypto derivatives and further beta on crypto recovery from the bottom,” Chhugani wrote.