Bitcoin traded firmly above $92,000 on Sunday, extending a quiet rally that has seen the world's largest cryptocurrency recover from late November lows. More significantly, one of Wall Street's most respected research firms is now declaring that the bottom is in—and projecting substantial upside ahead.

Bernstein's Bold Call

Bernstein analysts wrote in a recent note that they believe "with reasonable confidence that bitcoin and broader digital asset markets have bottomed," pointing to $80,000 in late November as the cycle low. The firm maintained its forecast that Bitcoin will hit $150,000 in 2026 and $200,000 in 2027.

This isn't a speculative call from crypto enthusiasts. Bernstein is an established Wall Street research firm whose crypto coverage is followed by institutional investors managing trillions in assets. Their conviction adds weight to the bullish case at a moment when retail sentiment remains cautious.

"We believe with reasonable confidence that bitcoin and broader digital asset markets have bottomed."

— Bernstein Research

Where Bitcoin Stands Today

At the time of writing, Bitcoin was trading at approximately $92,381, up 1.6% over the past 24 hours. The cryptocurrency has shown strong development over the past 10 days, breaking the $90,000 resistance and rallying to $94,588 before consolidating.

Ethereum followed closely, gaining 2.1% to trade above $3,150, while major altcoins largely moved sideways. The market's selective rally has favored tokens with clear utility narratives, particularly those connected to AI and decentralized infrastructure.

Crypto miners with AI exposure, including Hut 8, IREN, and Core Scientific, emerged among the day's better performers, up roughly 2-4%. This reflects the growing convergence between crypto infrastructure and AI computing demands.

The Price Range Debate

Not all analysts share Bernstein's bullish conviction. Carol Alexander, professor of finance at the University of Sussex, expects Bitcoin to remain in a "high-volatility range" of between $75,000 and $150,000 throughout 2026, "with the centre of gravity around $110,000."

James Butterfill, head of research for CoinShares, strikes a middle ground, expecting Bitcoin to trade between $120,000 and $170,000 in 2026, with "more constructive price action likely occurring in the second half of the year."

The consensus view among institutional analysts has shifted decidedly bullish, but with important caveats about timing and volatility. Few expect a straight line to higher prices.

The Fed Factor

Recent price action has been influenced by Federal Reserve expectations. A mixed December 2025 jobs report compelled crypto traders to rethink how soon the Fed might cut rates. While the data signaled no economic stress, it reduced urgency for near-term easing, triggering rotation that favored equities over rate-sensitive assets like crypto.

This dynamic has seen Bitcoin underperforming as traditional markets rise. The Nasdaq is up around 1% and the S&P 500 about 0.8%, while Bitcoin has traded sideways. For crypto bulls, this disconnect is temporary; for skeptics, it reflects continued institutional preference for traditional assets.

Institutional Adoption Continues

Despite recent ETF outflows—Bitcoin ETFs saw $1.1 billion exit over three days earlier this month—the structural trend toward institutional adoption remains intact. BlackRock, the world's largest asset manager, recently stated that retail crypto access is "still so early," suggesting significant room for growth in the Bitcoin ETF category.

The approval of spot Bitcoin ETFs in January 2024 marked a watershed moment for institutional access. As these products mature and advisor adoption increases, the addressable market for Bitcoin investment continues to expand.

The Regulatory Tailwind

The Trump administration's pro-crypto stance has created a more favorable regulatory environment than at any point in Bitcoin's history. The CLARITY Act, which could come to a Senate vote as early as January 15, would provide regulatory clarity that the industry has long sought.

Morgan Stanley's filing for Bitcoin, Solana, and Ether ETFs—making it the first major U.S. bank to do so—reflects growing institutional confidence that regulatory barriers are falling. This normalization of crypto in traditional finance provides a structural bid that wasn't present in previous cycles.

Risks to the Bullish Case

Several factors could derail the bullish scenario:

  • Economic recession: A significant economic downturn would likely pressure risk assets including crypto, potentially testing the $80,000 bottom that Bernstein has identified
  • Regulatory reversal: While the current environment is favorable, regulatory missteps or scandals could trigger crackdowns
  • Technical breakdown: If Bitcoin fails to hold key support levels around $90,000, technical traders may accelerate selling
  • Competition from AI: Investment capital that might have flowed to crypto has increasingly chased AI opportunities, creating allocation competition

What It Means for Investors

Bernstein's bottom call carries weight, but should be considered within a portfolio context. Their $150,000 target implies roughly 60% upside from current levels—attractive if realized, but not without risk.

For investors considering crypto exposure, the current consolidation phase may offer a more favorable entry point than the euphoric rallies that characterized late 2024. Dollar-cost averaging remains a prudent approach for those building positions.

The crypto market has matured significantly since previous cycles. Institutional participation is higher, regulatory clarity is improving, and the asset class has survived multiple stress tests. Whether Bernstein's $150,000 target proves prescient will depend on execution of these structural tailwinds—and the absence of negative surprises.

For now, Bitcoin holds above $92,000, and Wall Street's most respected crypto analysts are declaring the bottom is in.