Wainwright, an analyst from the well-known New York investment bank HC, announced the end of the "encryption winter".
The bank has initiated a "buy" rating on US cryptocurrency exchange Coinbase, saying the company will benefit from the growing global cryptocurrency industry. In a note to investors on April 26, Wainwright analyst Mike Colonnese observed that the overall price of the c Krypton assets is up 45% year-to-date on the back of a 67% rise in the price of Bitcoin.
According to the analyst, the market "may now have entered the next bullish price cycle for BTC, which has historically led to significant growth in the total cryptocurrency market capitalization, increased retail and institutional adoption, and increased cryptocurrency trading volumes. "Increase." "Cryptocurrency winter is over, spring is here."
Given that Coinbase is the world's largest publicly traded cryptocurrency exchange, Coinbase is "uniquely positioned to benefit from the large and rapidly growing global crypto economy," Colonnese added. As such, the investment firm expects the company to expand its market share in the cryptocurrency space during the remainder of 2023. Colonnese set a price target on Coinbase stock (COIN) of $75 per share, representing an upside of nearly 40% from its current trading price of $53.89.
He explained that the new price target is based on expectations that Coinbase will continue to benefit from “a continuation of bullish price action in 2023 in cryptocurrencies.” Bullish sentiment usually precedes Bitcoin, he notes. Halving event, the next one is scheduled for April 2024.
Colonnese further justified the $75 price target, writing that the cryptocurrency exchange has built a “strong user base” with 110 million verified users and 8.3 million active users across 100 countries. Overall, there are 884 institutions currently Holding investments in Coinbase, according to Fintel data. This figure marks a 2.1% decrease in ownership compared to Q4 2022, and a 15.12% decrease in the average portfolio weight of institutional total investment in Coinbase over the same period.
The largest institutional holder of Coinbase shares is Cathie Wood's ARK Invest, with 11.7 million shares, or 5.09% ownership of the company. In its last Nasdaq filing, ARK Invest reported owning 9.2 million shares, up 22% quarter-on-quarter .Wainwright analysts aren't the only ones who believe the crypto winter is over. In an interview with Cointelegraph, veteran cryptocurrency trader Phillip Swift reiterated his view that the bear market is over. However, he said that the price of bitcoin could return to "as low as $20,000" before the next bull cycle begins.
Ultimately, however, Swift's claim that the halving narrative will intensify in the second half of the year “should increase buying pressure.”
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