Bernstein Signals Crypto Stock Reversal: Major Entry Point Emerging Before Q1 Earnings

Bernstein has issued a bullish signal on crypto equities, telling clients Monday that steep selloffs in Coinbase, Robinhood, and Figure have created a tactical buying opportunity despite near-term headwinds. The research firm maintained Outperform ratings across all three stocks while trimming price targets, a move that actually improves the risk-reward setup for traders seeking exposure to onchain finance and tokenization themes.

The Reset: Better Entry Points Across the Board

Crypto-linked equities have cratered between 57% and 62% from their 2025 peaks—a dramatic washout that Bernstein argues has reset valuations in favor of long-term holders. Despite the recent pain, the firm continues forecasting double-digit revenue and earnings growth through 2027, suggesting the selloff was more about sentiment reset than deteriorating fundamentals.

Here's where Bernstein cut targets: Coinbase (COIN) dropped from $440 to $330, Robinhood (HOOD) from $160 to $130, and Figure (FIGR) from $72 to $67. While these reductions might look bearish on the surface, they reflect Bernstein's acknowledgment that Q1 earnings will likely disappoint in the near term—but they're pricing in recovery thereafter.

The market showed early signs of stabilization Monday, with COIN up 2.5%, HOOD gaining 2%, and FIGR rising 1.7% in premarket trading before the open. This modest rebound hints at capitulation lows potentially being reached.

The Real Thesis: Tokenization and Onchain Finance Infrastructure

What Bernstein is really positioning for isn't a bounce in spot trading—it's the structural shift toward tokenized financial infrastructure. The firm sees stablecoins, tokenized credit products, and onchain prediction markets as the growth drivers that will sustain these platforms through 2027 and beyond.

Figure emerges as the clearest tokenization play. Bernstein forecasts consumer-loan marketplace volumes reaching $12.8 billion this year, expanding to $16.5 billion by 2027 as the company moves beyond home equity into small business and auto lending. This is real credit volume, not just speculation.

Robinhood is levering into emerging revenue streams. Bernstein expects prediction markets to evolve into a $240 billion industry, with event contracts contributing roughly 17% of trading revenue and 10% of total revenue next year. Add in margin lending, subscriptions, and deposits, and the company's earnings trajectory looks solid even if crypto activity stays subdued.