Crypto Equities Approach Cyclical Bottom Amid Geopolitical Tensions

Analyst Gautam Chhugani from Bernstein has identified a potential 'big discount' opportunity in crypto-linked equities. The sector has been pressured by macro uncertainty, geopolitical tension, and weak crypto sentiment, leading to a 60% drawdown from its 2025 highs.

However, the firm's research suggests that fundamentals tied to long-term growth themes remain intact. Structural drivers such as stablecoins, tokenization, prediction markets, and derivatives continue to underpin the sector.

The broker estimates that crypto equities have retraced roughly 60% from their peak, alongside a broader crypto market correction that erased trillions in value. Bitcoin itself has fallen sharply from record highs, contributing to weaker trading activity and sentiment.