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Zacks Investment Ideas feature highlights: Coinbase and IBIT
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For Immediate Release
Chicago, IL – August 25, 2026 – Today, Zacks Investment Ideas features Coinbase (COIN - Free Report) and iShares Bitcoin ETF (IBIT - Free Report) .
Bitcoin: Digital Gold in the Deficit Era
Over the past several months, Bitcoin has declined significantly amid macro pressures, quantum hacking fears, and speculative investors have shifting capital toward artificial intelligence stocks. After a strong rally through most of 2025, Bitcoin peaked at $126k before correcting more than 50% to a June low of $59k.
Although a 50% correction would be considered catastrophic for equity markets, it is quite the norm for Bitcoin. In fact, over the past decade, Bitcoin has dropped more than 50% from its all-time highs on five occasions, including the 2017-2018 bear market, the March 2020 COVID crash, the May-July 2021 correction, and the 2021-2022 FTX bear market.
Despite many deep Bitcoin drawdowns, Bitcoin has recovered to make fresh all-time highs after every drawdown in its history. Below are 5 reasons this time won’t be different:
Bitcoin Technicals:
Bitcoin has several bullish technical signals occurring currently. First, Bitcoin retreated to its long-term 200-week moving average for the first time since 2023. The 200-week MA has largely contained the Bitcoin bull market since its inception and has been one of the best long-term buy zones.
Meanwhile, Bitcoin just spent 6+ months below its 200-day moving average for the 3rd time in history. Getting a chance to buy Bitcoin at these levels is extremely rare in its history. The previous two instances it spent this much time below the 200-day, Bitcoin was up 39% and 115% a year later.
Bitcoin Momentum:
Analyst Caleb Franzen (@CalebFranzen) points out that last week’s Bitcoin +20% move may be a very bullish signal. Since 2018, Bitcoin’s average 6-month return is +51.3% after a 20% or more weekly move.
Bitcoin Shorts are Caught Offsides:
Last week’s crypto move triggered $2.73 billion in short liquidations, the largest short-liquidation event on record. That said, many traders remain offside on their shorts and will likely be forced to cover in the coming weeks.
Inflation Protection: For the first time, the U.S. federal deficit has reached $40 trillion. The U.S. government is now spending $3.8 billion on interest per day. By 2028, estimates suggest that number will swell to $5 billion. In other words, the government will be forced to print more money over the next few years and inflate the dollar. Because Bitcoin has a fixed supply, I see it as digital gold and a way to fight inflation.
Nation State Catalyst: Last Wednesday, President Trump announced that the U.S. plans to buy “sizable” amounts of Bitcoin.
Note: Investors who want to purchase Bitcoin but don’t have a Coinbase or crypto account can buy a low-cost ETF like the iShares Bitcoin ETF.
Bottom Line
Bitcoin’s long-term bullish thesis remains intact. Backed by historically reliable technical floors, record-setting liquidations, and mounting government debt, the current correction fits the pattern of previous cyclical bottoms
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Coinbase and IBIT
For Immediate Release
Chicago, IL – August 25, 2026 – Today, Zacks Investment Ideas features Coinbase (COIN - Free Report) and iShares Bitcoin ETF (IBIT - Free Report) .
Bitcoin: Digital Gold in the Deficit Era
Over the past several months, Bitcoin has declined significantly amid macro pressures, quantum hacking fears, and speculative investors have shifting capital toward artificial intelligence stocks. After a strong rally through most of 2025, Bitcoin peaked at $126k before correcting more than 50% to a June low of $59k.
Although a 50% correction would be considered catastrophic for equity markets, it is quite the norm for Bitcoin. In fact, over the past decade, Bitcoin has dropped more than 50% from its all-time highs on five occasions, including the 2017-2018 bear market, the March 2020 COVID crash, the May-July 2021 correction, and the 2021-2022 FTX bear market.
Despite many deep Bitcoin drawdowns, Bitcoin has recovered to make fresh all-time highs after every drawdown in its history. Below are 5 reasons this time won’t be different:
Bitcoin Technicals:
Bitcoin has several bullish technical signals occurring currently. First, Bitcoin retreated to its long-term 200-week moving average for the first time since 2023. The 200-week MA has largely contained the Bitcoin bull market since its inception and has been one of the best long-term buy zones.
Meanwhile, Bitcoin just spent 6+ months below its 200-day moving average for the 3rd time in history. Getting a chance to buy Bitcoin at these levels is extremely rare in its history. The previous two instances it spent this much time below the 200-day, Bitcoin was up 39% and 115% a year later.
Bitcoin Momentum:
Analyst Caleb Franzen (@CalebFranzen) points out that last week’s Bitcoin +20% move may be a very bullish signal. Since 2018, Bitcoin’s average 6-month return is +51.3% after a 20% or more weekly move.
Bitcoin Shorts are Caught Offsides:
Last week’s crypto move triggered $2.73 billion in short liquidations, the largest short-liquidation event on record. That said, many traders remain offside on their shorts and will likely be forced to cover in the coming weeks.
Inflation Protection: For the first time, the U.S. federal deficit has reached $40 trillion. The U.S. government is now spending $3.8 billion on interest per day. By 2028, estimates suggest that number will swell to $5 billion. In other words, the government will be forced to print more money over the next few years and inflate the dollar. Because Bitcoin has a fixed supply, I see it as digital gold and a way to fight inflation.
Nation State Catalyst: Last Wednesday, President Trump announced that the U.S. plans to buy “sizable” amounts of Bitcoin.
Note: Investors who want to purchase Bitcoin but don’t have a Coinbase or crypto account can buy a low-cost ETF like the iShares Bitcoin ETF.
Bottom Line
Bitcoin’s long-term bullish thesis remains intact. Backed by historically reliable technical floors, record-setting liquidations, and mounting government debt, the current correction fits the pattern of previous cyclical bottoms
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.