Bernstein: Despite weak price action, cryptocurrency operators "appear to remain strong."

PANews reported on December 1 that, according to The Block, analysts at research and brokerage firm Bernstein said the crypto industry is "still looking for clear signs that Bitcoin has bottomed out," but they believe this decline is different from previous corrections because core cryptocurrency operators "appear to remain strong" and are actively adjusting their business models to explore new revenue streams.

In a report to clients on Monday, the analyst team acknowledged that weak market sentiment also impacted cryptocurrency-related stocks, noting that Coinbase had fallen 21% over the past 30 days, Circle 37%, and Robinhood 12%. Nevertheless, the analysts stated that most speculative overreaction was limited to imitators of long-tail strategies and reiterated their view that there is no "real-world scenario" threatening the long-term development of long-tail strategies. Bernstein emphasized that the industry's overall operating performance contrasts sharply with market prices, pointing to ongoing business model reforms and regulatory benefits as evidence of the industry's inherent resilience. In the analysts' view, the industry is entering a phase where companies are implementing strategies previously constrained by regulatory uncertainty, expanding their business beyond cyclical transaction revenue. The analysts cited Coinbase's expanding product line, token offerings, and emerging consumer applications as examples of these business model shifts.