Bernstein: The valuation of cryptocurrency stocks has not reflected their long-term growth potential despite a significant drop in their prices.

On March 30th, Sina Finance reported that Bernstein stated that stocks related to cryptocurrency are trading at a "huge discount" after a significant decline. The current valuation reflects weak short-term sentiment rather than long-term growth potential. The research and brokerage firm pointed out in a report to clients on Monday that stocks related to digital asset infrastructure, including exchanges, brokerage companies, and tokenization platforms, have fallen by about 60% from recent highs, despite their core businesses continuing to expand in stablecoins, derivatives, prediction markets, and tokenizing real-world assets. Bernstein expects the current weakness to continue until after the first quarter earnings are released, at which point it will stabilize. In light of this, analysts believe that a bottom may be formed around the first quarter earnings season.