New York Investment Bank Claims that Crypto Winter is Over
- A New York-based investment bank, H.C. Wainwright, claims that the “crypto winter is over, and spring has sprung.”
- The firm’s analyst, Mike Colonnese, believes that the crypto market is now entering the next bullish cycle for Bitcoin due to the upcoming halving.
- He said that “growth in total crypto market cap, incremental retail and institutional adoption, and higher crypto trading volumes” will be seen.
- The analyst believes that crypto exchange Coinbase is “uniquely positioned to benefit from the large and rapidly growing global crypto economy.”
- The analyst has put a price tag of $75 per share on Coinbase stock (COIN), marking a near 40% increase from its current trading price.
Crypto winter is a popular phrase that represents a significant drop in the prices of cryptocurrencies and a period wherein blockchain and cryptocurrency-related companies witness their users and revenue decrease by manifolds. Interestingly, a popular investment bank based in New York, H.C. Wainwright, claims that this bearish phase in the crypto market that has haunted investors since 2022 is over and good days might be around the corner.
According to an April 26 note sent out to investors and customers of the investment bank, H.C. Wainwright analyst Mike Colonnese claims that the “crypto winter is over” while adding that the 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.”
Taking into account the year-to-date (YTD) metrics, the price of the world’s largest digital asset, Bitcoin (BTC), has rallied 67% in 2023 while the collective worth of the crypto market is up close to 47%, which indicates that the gradual sentiment regarding digital assets is now changing and investors can expect a shift in market movement as the crypto winter nears its end.
“Crypto winter is over, and spring has sprung.”
Coinbase a Good Buy Post Crypto Winter
The investment bank claims that the leading crypto exchange in the United States, Coinbase (COIN), is a very good purchase with huge upside potential. The bank believes that the company is “uniquely positioned to benefit from the large and rapidly growing global crypto economy,” as it is the only digital asset broker that is publicly listed in the US.
Colonnese believes that the company will continue to expand its market presence throughout the remaining year and emerge as one of the leading companies in the digital asset space following the crypto winter. The analyst has put a price tag of $75 per share for Coinbase stock (COIN), marking a near 40% increase from its current trading price of around $54.
This bullish prediction for the Coinbase stock was provided by the analyst while taking into account the fact that the crypto exchange will continue to benefit from the “continuation of crypto’s bullish price action in 2023.” It is also important to mention here that the halving of Bitcoin (BTC) will be witnessed in 2024, which is also another bullish indication for the crypto industry.
According to the data from Alternative.me, the Bitcoin Fear and Greed Index has turned to ‘greed’ after ranging from ‘fear’ to ‘extreme fear’ last year. This indicates that the buying pressure for the cryptocurrency is higher than the selling pressure, a situation contrary to the 2022 crypto winter.
As reported earlier by Bitnation, the crypto exchange acquired One River Digital Asset Management (ORDAM), which has been rebranded to Coinbase Digital Asset Management (CDAM), earlier this year as a part of its expansion plans. There are also plans to move out of the United States due to the poor regulatory regime under the presence of Securities and Exchange Commission (SEC).
The New York-based investment bank isn’t the only firm that is bullish on the crypto exchange. Recently, it was revealed that Cathie Wood’s American investment management firm, Ark Invest, purchased $9.2 million worth of Coinbase (COIN) shares on February 10. COIN shares were also purchased by Ark on January 5 and January 11.