Bitcoin may have already bottomed, according to Bernstein, which argues that digital asset markets are poised for a recovery as the broader tokenization cycle gains momentum.
In a note on Tuesday, Bernstein analyst Gautam Chhugani said the firm remains "positive on Bitcoin despite weak sentiment in Q4."
He added: "We believe with reasonable confidence that Bitcoin and the broader digital asset markets have bottomed."
The firm noted that Bitcoin ended 2025 down 6 percent, while crypto stocks delivered an average return of around 59 percent, despite a slowdown late in the year.
Bernstein expects 2026 to be defined by what it calls a "tokenization supercycle," encompassing stablecoins, capital markets, and prediction markets. Analysts have set a $150,000 Bitcoin price forecast for 2026 and a peak target of $200,000 for 2027, citing the continued expansion of stablecoin payments and the growth of tokenized real-world assets.
Chughani predicts the total supply of stablecoins will grow 56 percent year-over-year to $420 billion, driven by "crypto markets, cross-border B2B payments... and agency payments."
Bernstein also expects a sharp rise in tokenized assets, projecting the value locked in blockchains to grow from approximately $37 billion in 2025 to approximately $80 billion in 2026, with equity tokenization increasing its share of activity. The analyst considers crypto-focused companies HOOD, COIN, FIGR, and CRCL to be the "best tokenization proxies" in his coverage, noting that "the MSTR premium is returning as Bitcoin recovers."
Prediction markets could double to $70 billion in 2026, Bernstein stated, adding that the platforms could gain additional legitimacy as federal regulators provide clearer support.