Crypto operating businesses ‘look strong,’ despite weak price action: Bernstein

Research firm Bernstein noted that while Bitcoin's price action remains weak, core crypto operating businesses appear fundamentally strong as they actively reshape their models toward new revenue streams, distinguishing this downturn from previous corrections. Analysts acknowledged that crypto-related equities like Coinbase and Circle have seen significant price drops, but believe speculative excess is limited. Bernstein emphasized that operating performance contrasts sharply with market prices, citing ongoing business model overhauls and regulatory tailwinds as signs of resilience. Coinbase is highlighted as a key example, aggressively pursuing an "everything exchange" strategy combining trading, tokenized equity markets, prediction markets, and consumer payments, moving beyond reliance on cyclical trading revenue. Regulatory clarity is enabling expansion into areas where international competitors previously had an edge. The firm expects Coinbase to launch more tokenized-equity and prediction market offerings soon, leveraging its Deribit acquisition to expand derivatives and compete with firms like Robinhood, while also building a consumer wallet described as a "crypto Venmo." Bernstein concludes that these strong operational developments suggest the current market correction is a long-term opportunity.

(Source：The Block)