Analysts see extended cycle fueled by U.S. policy, institutional adoption, and growth in DeFi
Bernstein analysts believe the ongoing crypto bull market could extend through 2027, well beyond the typical four-year cycle, driven by supportive U.S. policies and increasing institutional participation. The firm issued its latest research note after crypto prices cooled this week following a rally toward all-time highs.
The brokerage said Bitcoin could reach between $150,000 and $200,000 within the next year, but emphasized that the broader bull market is unlikely to end quickly.
“The Trump administration is in mission-critical mode to build the U.S. into the crypto capital of the world,” analysts Gautam Chhugani and Mahika Sapra wrote. “We expect a long crypto bull market, continuing the surge into 2026 and potentially peaking in 2027.”
Expanding Beyond Bitcoin
Bernstein highlighted that the next phase of the rally will broaden beyond bitcoin, with Ethereum, Solana, and DeFi tokens leading inflows into trading platforms and stablecoin issuers. Analysts noted that diversification of growth drivers could provide the foundation for a more resilient and prolonged cycle.
Robinhood, Coinbase, and Circle in Focus
The firm also raised its price targets for major publicly listed crypto companies:
- Robinhood (HOOD) – Target increased to $160 from $105, citing July crypto trading volumes of $16.8 billion, up 110% month-over-month. Bernstein said Robinhood’s acquisition of Bitstamp and rollout of staking and tokenized products in Europe will attract institutional users and diversify revenue.
- Coinbase (COIN) – Target set at $510, driven by surging volumes above $100 billion in July and a 44% jump in transaction revenue. The analysts pointed to Coinbase’s derivatives expansion, integration of Deribit’s options platform, and USDC adoption as catalysts.
- Circle (CRCL) – Target maintained at $230, with projections that USDC supply could grow from $68 billion today to $173 billion by 2027. Analysts said Circle’s payments-focused Arc blockchain and partnerships with banks and fintechs will help it scale further.
Bernstein’s outlook underscores the growing role of policy and institutional adoption in shaping digital asset markets. The analysts argue that while volatility will remain, the combination of regulatory clarity, rising stablecoin adoption, and DeFi expansion could keep the bull market alive for several more years.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.