Bitcoin hovers near $70,000 as analyst calls sell-off 'a mere crisis of confidence'

Bitcoin ($BTC ) hovered near $70,000 on Monday after last week's sharp sell-off and subsequent rebound.

The cryptocurrency is down roughly 44% from its all-time high north of $126,000 set last October, when forced liquidations and whale sales triggered a crypto winter.

Selling intensified last week when the token saw its worst daily drop since November 2022.

"The current Bitcoin price action is a mere crisis of confidence. Nothing broke, no skeletons will show up," Bernstein analyst Gautam Chhugani said in a note on Monday morning.

"In an AI world, Bitcoin and crypto are not interesting enough," Chhugani said, adding that the "Bitcoin bear case is the weakest in its history."

He also pointed out that spot ETFs have seen only a 7% outflow compared with a 50% correction in bitcoin prices during last week's sell-off.

With respect to fears that quantum computing could threaten bitcoin's encryption, the analyst said the risk is not imminent and the blockchain is well-positioned to adapt with support from major players like Strategy (MSTR), BlackRock (BLK), and Fidelity.

Chhugani expects bitcoin to reach all-time highs again, with a target of $150,000 by the end of the year.