Is the Crypto Rally Dead? Why Bernstein Still Predicts a $150K Bitcoin Peak Despite Waller’s Warnings

TradingKey - Fed Governor Waller claims the crypto craze has faded, while Bernstein backs Bitcoin to reach $150,000 this year.

On Tuesday (February 10), the cryptocurrency market remained sluggish; with a sentiment index of 9, the state of extreme fear shows no signs of abating. Among them, Bitcoin (BTC) hovered around $70,000, with the current price at $69,380, rebounding only 15% from its low on February 6.

Bitcoin price chart, Source: CoinMarketCap

In the view of Federal Reserve Governor Christopher J. Waller, the craze in the cryptocurrency market is subsiding. On Monday, Waller stated at a conference in California, "With the current administration taking office, some fervor has emerged in the crypto world, and part of that is now gradually fading."

In early 2025, Trump assumed the U.S. presidency once again and subsequently fulfilled several cryptocurrency promises, such as firing former SEC Chair Gary Gensler, establishing a cryptocurrency task force, and pardoning key crypto figures. This series of actions bolstered bullish market sentiment. However, investor expectations for a strategic crypto reserve and Fed rate cuts fell short, leading to a lack of market confidence.

Last year, Trump announced the establishment of a national strategic Bitcoin reserve, but it was to be achieved through seizure rather than purchase. On February 4 this year, U.S. Treasury Secretary Scott Bessent emphasized, "The U.S. government will not require private banks to purchase or bail out Bitcoin during a market downturn."

Furthermore, the battle between Trump and Fed Chair Powell has temporarily ended in the former's favor with the nomination of former Fed Governor Kevin Warsh as the new head. However, market sentiment remains low as Warsh may be a dove, and uncertainty regarding future rate cuts remains high.

Despite the crypto market hitting a freezing point, Bernstein remains firmly bullish. On January 7, Bernstein analyst Gautam Chhugani stated, "There is reasonable confidence that Bitcoin and the broader digital asset market have bottomed out." Additionally, the analyst predicts that Bitcoin will hit a new all-time high this year, rising to $150,000.