Berenstein: Crypto Company Fundamentals "Remain Strong," Current Bear Market Decline Shows Fundamental Differences

On December 1, a Bernstein analyst noted the industry is still “waiting for a clear signal that Bitcoin has bottomed out” — but stressed this downturn is fundamentally different from past pullbacks: core crypto operating firms are actively shifting to new revenue models, and business fundamentals remain “strong.” In a client report Monday, analyst Gautam Chhugani’s team acknowledged bearish sentiment has hit crypto-related stocks: Coinbase is down 21% in the past 30 days, Circle has fallen 37%, and Robinhood is off 12%. However, they noted most speculative bubbles are confined to the tail of trend-chasing projects, reiterating “no real-world scenario threatens the long-term viability of these projects.” Bernstein highlighted the stark gap between the industry’s operational performance and market valuations, noting business model innovation and regulatory tailwinds are showing strong resilience. The team believes the industry is entering a new phase, where firms are finally implementing strategies previously held back by regulatory uncertainty to expand beyond transactional revenue streams.