Bernstein reiterates $200,000 bitcoin target, sees buying opportunity amid market correction

Bernstein has reaffirmed its 12-month bitcoin price target of $200,000, highlighting the current market correction as a buying opportunity for investors seeking strategic entry points before the next cycle high.

In an market analysis note sent to The Block, Bernstein analysts said that a bitcoin price decline below the $80,000 mark could provide an attractive entry point for investors, emphasizing that the current correction is temporary and does not change their outlook on bitcoin's ongoing bull cycle.

"We believe price levels below $80,000, if sentiment continues to weaken, would offer a compelling risk-reward for investors looking to position for the next 12-18 months towards new cycle-highs," Bernstein analysts stated in a note sent to The Block.

The research note characterized the current price pullback "as another opportunity to participate in this cycle" and reaffirmed their bullish stance on bitcoin's market structure. Bernstein analysts remain confident that "institutional and corporate treasury inflows will continue to accelerate into the cycle."

They also noted that bitcoin has not yet reached its cycle high, which they anticipate could be closer to the $200,000 mark within the next 12 months. Their long-term projection for bitcoin is based on a straightforward thesis: "a burgeoning 'digital gold' asset class, driven by accelerating institutional and sovereign demand."

Bitcoin price movement and market dynamics

Bitcoin has been range-bound over the past few weeks, however, in the past 24 hours, the largest cryptocurrency by market capitalization fell over 7%, dropping below the $87,000 mark.

According to Bernstein, multiple factors have contributed to the latest price dip, including the aftermath of a $1.5 billion hack on Bybit , one of the top five offshore cryptocurrency exchanges. Additionally, the controversy surrounding the Libra token , endorsed by Argentine President Javier Milei, has contributed to volatility in the broader crypto market.

"However, we believe the bitcoin market is following the broader equity risk sentiment driven by macro concerns around persistent higher rates, with fears of government turning deflationary with the DOGE program," Bernstein analysts said.

They also pointed to growing concerns about the AI capital expenditure trade, given recent bearish data center reports linked to hyperscale cloud providers.

Bernstein analysts view bitcoin as having a dual nature in trading dynamics, stating, "we view bitcoin as alternating between a high beta U.S. tech equity trade & gold, in the way it trades over shorter horizons."