Bernstein analysts say Bitcoin and the broader crypto market have likely bottomed. The call marks a clear shift from the $50,000-$60,000 downside fears that hung over the market in late 2025.
Morgan Stanley added weight to the bullish case this week, filing S-1 applications for both Bitcoin and Solana ETFs. The bank also added an Ethereum Trust to its internal crypto product lineup.
Coinbase analyst David Duong discussed the market shift during a recent conversation with Scott Melker.
“We’ve broken out of that 80 to 85 range where we actually said that’s a good place for people to accumulate here,” Duong said.
December Weakness Was Technical, Not Fundamental
The December selloff that shook confidence across the market was driven by tax-loss harvesting and options expiry. ETF outflows reversed almost immediately once the new year began.
“On a dime on December 31st you saw a lot of that change,” Duong noted.
Spot Bitcoin ETF inflows have rebounded since then, supporting the view that the dip was seasonal rather than a sign of deeper problems.
Wall Street Banks Playing Catch-Up
Morgan Stanley’s ETF filings point to growing competitive pressure among traditional banks. BlackRock’s dominance in crypto ETFs has forced rivals to respond with their own products.
“You can’t have your biggest client like BlackRock coming in and saying we’re going into crypto and you don’t have a plan,” Duong explained.
Altcoins Showing Early Strength
ETH, Solana, and XRP are all outperforming Bitcoin in early 2026. Capital is moving into riskier assets now that Bitcoin has more regulatory clarity.
Analysts see this altcoin strength as a healthy sign for the broader market.
Risks Still on the Table
Duong remains bullish through Q1 and into early Q2 but said his outlook gets less clear beyond that point.
“My visibility kind of ends around the April-May area to be honest with you,” he said.
U.S. midterm elections and Supreme Court tariff rulings are among the key risks that could shift the market later this year.
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FAQs
Stronger performance in ETH, Solana, and XRP suggests investors are regaining confidence in riskier assets. This could attract more capital into the crypto sector, potentially boosting liquidity and trading activity across multiple coins.
Yes, ETH, Solana, and XRP are gaining faster than Bitcoin as investors move into higher-risk assets.
Midterm elections and Supreme Court tariff rulings may impact the market, making predictions beyond Q2 less certain.
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