Bernstein: The fundamentals of cryptocurrency companies are strong, and the decline in this bear market is fundamentally different from previous ones

According to The Block, analysts from research brokerage Bernstein pointed out that the industry "is still waiting for a clear signal that Bitcoin has bottomed," but emphasized that this round of decline is fundamentally different from previous corrections—core crypto operating companies are actively transitioning to new revenue models, and the business fundamentals are "performing strongly."

In a report to clients on Monday, analyst Gautam Chhugani's team acknowledged that the weak sentiment has affected crypto-related stocks: Coinbase is down 21% over the past 30 days, Circle is down 37%, and Robinhood is down 12%. However, they noted that most speculative bubbles only exist in the tail-end projects of trend-following strategies and reiterated that "no realistic scenario threatens the long-term viability of the strategy."

Bernstein emphasized that the operational performance of the industry stands in stark contrast to market prices, with innovations in business models and favorable regulations reflecting deep resilience. Analysts believe the industry is entering a new phase, with companies beginning to implement strategies previously constrained by regulatory uncertainty, expanding into areas beyond cyclical trading revenue.