Bitcoin hovered near $70,000 on Monday after last week's sharp decline and subsequent rebound. Bernstein analyst Gautam Chhugani anticipates the cryptocurrency will once again reach a new all-time high, targeting $150,000 by the end of the year. Bitcoin is currently down approximately 44% from its peak above $126,000 in October last year, a period marked by forced liquidations and large-scale sell-offs by major holders that triggered talk of a crypto winter. Last week's sell-off intensified, with the token experiencing its most severe single-day drop since November 2022. Bitcoin stabilized on Monday, rebounding after hitting a low near $61,000 on Friday.

Chhugani stated in a report Monday morning, "The current price action in Bitcoin is merely a crisis of confidence. There is no major underlying issue, and no scandal is about to be exposed. In the age of AI, Bitcoin and crypto have become less conspicuous. The bear case for Bitcoin is the weakest in history." He also pointed out that outflows from spot ETFs were only 7%, while Bitcoin's price fell by 50% last week.

Addressing concerns that quantum computing could threaten Bitcoin's encryption, the analyst noted that such a risk is not imminent and that the blockchain is well-prepared to adapt, supported by major players like MicroStrategy (MSTR.US), BlackRock, and Fidelity. Last week, Sean Farrell, Head of Digital Assets at Fundstrat, mentioned he was increasing his portfolio's net long exposure to 80%, but "leaving some flexibility in case of a move back into the $50,000 range."