Bernstein analyst Gautam Chhugani argues Bitcoin's current price weakness represents the weakest bear case in its history, driven by a manufactured crisis of confidence rather than structural problems. The analyst notes that despite recent sell-offs, no major failures have occurred in the cryptocurrency ecosystem, and media speculation about Bitcoin's demise appears premature.

Chhugani contends that Bitcoin's divergence from gold reflects liquidity conditions rather than fundamental weakness, as the cryptocurrency has historically traded as a risk asset. He points out that Bitcoin ETFs have experienced only 7% outflows compared to a roughly 50% price correction, suggesting the sell-off may be overdone. The analyst maintains a bullish outlook for 2026, targeting approximately $150,000 per Bitcoin.

Addressing concerns about Bitcoin's relevance in an AI-driven world, Chhugani argues that blockchain technology serves as "AI's natural financial partner" in the emerging agentic economy. He also downplays quantum computing risks, noting that the threat is neither unique to Bitcoin nor imminent, especially with large institutions now involved who can ensure necessary upgrades. The analyst further highlights that Bitcoin miners have diversified into AI data center operations, strengthening their financial position and reducing the risk of miner bankruptcies that plagued earlier cycles.