According to New York investment bank HC Wainwright, the long and harsh winter of cryptocurrencies is finally coming to an end. Its analysts believe that the worst is over and that investments in the world of cryptocurrencies are once again becoming options viable. With an upward trend in the price of bitcoin and an overall 45% increase in crypto markets since last year, signs of recovery are starting to show, but are we off the hook?
The crypto winter is over and we have probably entered the next bull cycle of BTC
HC WAINWRIGHT & CO. EQUITY RESEARCH
Coinbase: A boom fueled by scarcity
In a ja************@in***********.com&source=mail" target="_blank" rel="noreferrer noopener nofollow">document shared by the investment bank, Mike Colonneseanalyst at HC Wainwrightestimate that “the opportunities outweigh the risks” citing the COIN action of Coinbase.
Mike Colonnese points out that Coinbasea company of crypto currencies of high value listed on the stock exchange, is particularly well placed to take advantage of an impending rise. Coinbase stock, CORNERis considered a asset rare due to its unicorn status, the only publicly traded crypto exchange in the United States with a market capitalization exceeding $10 billion. This scarcity, combined with the current regulatory environment, makes it unlikely that the value of Coinbase will change in the short term, according to the analyst.
As the dominant cryptocurrency exchange in the United States and one of the largest in the world, we believe Coinbase is uniquely positioned to take advantage of the large and growing global cryptocurrency economy. full growth.
Currently valued at $40 per share, Colonnese gets wet and suggests that CORNER could potentially climb as high as $75 in the near future, if all goes according to plan. He also notes that now is a good time for investors looking to enter the market, given the 85% drop in COIN’s price from its all-time high.
Navigating the regulatory landscape
Colonnese’s analysis takes into account the recent actions of the SEC against various platforms of crypto currencies. While the SEC primarily targets security services staking provided by financial platforms, Coinbase would have managed to circumvent these problems. Staking accounted for just 3% of Coinbase’s revenue last year, indicating the company is less susceptible to regulatory crackdowns. However, it seems obvious to us that Coinbase is not immune to American regulation and its lack of clarity. The exchange has also recently filed a lawsuit to force the SEC to answer its questions on the regulation of the sector.
Learn more: Regulation: Coinbase sues the SEC for its lack of clarity
Although the market is showing green, investors should remain vigilant. Many other analysts consider that we are still in bear market and no one can say for sure which direction the market will take next.
If investment banks are often considered specialists in the field, it is not uncommon for giants to be wrong, sometimes completely, until they collapse.
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