NY investment bank says 'crypto winter is over,' bullish outlook for Coinbase
Analysts from the prominent New York-based investment bank H.C. Wainwright have declared an end to “crypto winter.”
The bank has initiated its coverage of U.S. crypto exchange Coinbase with a “buy” rating, saying that the company stands to benefit from the growing cryptocurrency industry around the globe.
In an April 26 note sent out to investors, Wainwright analyst Mike Colonnese observed that overall crypto asset prices have rallied 45% year-to-date (YTD) supported by a 67% increase in the price of Bitcoin (BTC).
According to the analyst, markets “have likely now entered BTC's next bull price cycle which has historically resulted in significant growth in total crypto market cap, incremental retail and institutional adoption, and higher crypto trading volumes.”
Colonnese added that Coinbase is "uniquely positioned to benefit from the large and rapidly growing global crypto economy” given that it stands as 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 throughout the remainder of 2023.
Colonnese set a price target of $75 per share for Coinbase stock (COIN), marking a near 40% increase from its current trading price of $53.89.
He explained that the new price target is based on an expectation that Coinbase will continue to benefit from the “continuation of crypto’s bullish price action in 2023.” He noted that bullish sentiment typically precedes a Bitcoin (BTC) halving event, the next being scheduled for April 2024.
Further justifying the 75-dollar price target, Colonnese wrote that the crypto exchange has established a “robust user base” with 110 million verified and 8.3 million active users throughout 100
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