New York Investment Bank Says “Crypto Winter Is Over,” Optimistic Outlook for Coinbase

[ad_1]

Analysts at renowned New York investment bank HC Wainwright have declared the end of crypto winter.

The bank kicked off its coverage of US crypto exchange Coinbase with a buy rating, saying the company stands to benefit from the growth of the cryptocurrency industry globally.

In an April 26 note sent to investors, Wainwright analyst Mike Colonnese observed that overall crypto asset prices are up 45% year-to-date (YTD), backed by a 67% increase. % of Bitcoin (BTC) price.

According to the analyst, the markets have likely entered the next BTC bull price cycle, which has historically led to significant growth in total crypto market capitalization, incremental retail and institutional adoption and volumes. higher crypto trading rates.

“The crypto winter is over and spring has arrived.

Colonnese added that Coinbase is “in a unique position to benefit from the rapidly growing large global crypto economy, given that it is the largest publicly traded crypto exchange in the world. As a result, the investment firm expects the company to expand its market share in the cryptocurrency sector during the rest of 2023.

Coinbase (COIN) share price year-to-date. Source: Trading View.

Colonnese has set a price target of $75 per share for Coinbase (COIN) shares, marking an increase of nearly 40% from its current trading price of $53.89.

He explained that the new price target is based on the expectation that Coinbase will continue to benefit from continued bullish crypto price action in 2023. He noted that bullish sentiment usually precedes a halving event. Bitcoin (BTC), with the next scheduled for April. 2024.

Further justifying the $75 price target, Colonnese wrote that the crypto exchange has established a strong user base with 110 million verified users and 8.3 million active users across 100 countries.

Overall, there are a total of 884 institutions that currently hold investments in Coinbase, according to data from Fintel. This figure marks a 2.1% decrease in ownership from Q4 2022, with the average portfolio weight of total institutional investment in Coinbase decreasing by 15.12% over the same period.

The largest institutional holder of Coinbase shares is Cathie Woods ARK Invest, which currently owns 11.7 million shares representing 5.09% ownership of the company. In its latest NASDAQ filing, ARK Invest said it held 9.2 million shares, representing a quarterly increase of 22%.

Related: Coinbase Files Lawsuit to Compel SEC to Respond to Regulatory Petition

Wainwright analysts aren’t the only ones who believe the end of crypto winter has arrived. In an interview with Cointelegraph, veteran crypto trader Phillip Swift reiterated his view that the bear market has come to an end. However, the price of Bitcoin could return to $20,000 before the start of the next bull cycle, he said.

Ultimately, however, Swift says the halving narrative will gain momentum in the second half of this year, which should increase buying pressure.

Magazine: The best and worst countries for crypto taxes More advice on crypto taxes

[ad_2]