Crypto Stocks Offer 'Big Discount' After 60% Plunge
Crypto-linked equities present a significant buying opportunity after a roughly 60% drawdown from their 2025 highs, according to a March 30 report from Wall Street broker Bernstein. Analysts led by Gautam Chhugani argue that market weakness has created "big businesses at big discounts," presenting a rare entry point for investors ahead of what are expected to be weak first-quarter earnings reports.
The sector's decline follows a sharp, sustained correction in digital assets that began in October 2025. The downturn saw Bitcoin fall 40%-50% from its record high near $126,000 and erased approximately $2 trillion from the total crypto market capitalization. Bernstein notes that a combination of geopolitical factors and weak sentiment has heavily weighed on stock valuations.
Bernstein Cuts Price Targets But Maintains Outperform Ratings
While maintaining a bullish long-term outlook, Bernstein revised its price targets downward for several key crypto equities. The target for Coinbase (COIN) was lowered to $330 from $440, Robinhood's (HOOD) was cut to $130 from $160, and Figure's (FIGR) was adjusted to $67 from $72. Despite the reductions, the firm maintained 'Outperform' ratings for all three, signaling confidence in their fundamental business models. At the time of the report, COIN was trading around $165.50, HOOD at $67.10, and FIGR at $31.14.
The analysis highlights the diverse strengths of these companies. Robinhood's business is viewed as more resilient to crypto trading cycles, with digital assets accounting for only about 20% of its revenue. Figure is described as a "pure blockchain tokenization business," with analysts forecasting its loan volumes to reach $12.8 billion in 2026 after monthly originations surpassed $1 billion in March.
Analysts Project 23% EPS Growth for Coinbase in 2026
Bernstein's positive long-term thesis is anchored in the multi-year growth potential from stablecoins, asset tokenization, prediction markets, and derivatives. For Coinbase, the firm anticipates 23% EPS growth in 2026, driven by expansion in these emerging areas. Similarly, Robinhood is projected to see revenue growth of roughly 30% from 2025 to 2027, supported by prediction-market activity and a rebound in crypto volumes later in the year.
The call on crypto equities aligns with the firm's broader market view. Just last week, Bernstein analysts declared that Bitcoin has likely found its bottom and reiterated a year-end price target of $150,000 for the digital asset. This suggests the firm sees the current weakness in crypto-linked stocks as a temporary dislocation before the next phase of growth.
