H.C. Wainwright, a leading New York investment bank, has notified its investors that crypto winter is finally over.
Furthermore, crypto lending platforms that have been able to weather the storm will be uniquely poised to profit from a likely future hype train – chief among them being Coinbase.
Scarcity Drives Value
In the words of H.C. Wainwright analyst Mike Colonnese, Coinbase is uniquely positioned to profit from the purported future bull run due to its unicorn status as a high-value, publicly traded crypto company. As a result, Coinbase’s stock, COIN, can be considered a rare asset and one expected to perform well in any bull run.
“Lastly, we view COIN as a scarce asset, as Coinbase is the only publicly listed crypto native company in the US with a market cap in excess of $10B, which means competition for investor capital is extremely limited, and given the current regulatory environment for crypto, we see Coinbase’s scarcity value unlikely to change over the near term.”
Furthermore, Colonnese believes there is no time like the present for investors looking to break into the market to get in on the action, citing an 85% price drop since COIN’s ATH. Currently, COIN is valued at $40 per share. However, Colonnese asserted that in the near future, the stocks’ price could shoot up to 75$, provided everything goes according to plan.
The analysis of Coinbase’s possible future performance also takes into account the SEC’s recent actions against various crypto platforms. However, Colonnese notes that the SEC generally takes action against staking services offered by financial services. Fortunately for Coinbase, staking only accounted for 3% of its revenue last year.
Bull Run Allegedly on the Horizon
Further strengthening his argument, Colonnese shares recent Bitcoin growth charts, inferring that the price of the asset seems to have not only stabilized but gone on an upwards trend. In turn, crypto markets – which are still highly dependent on BTC’s value – have increased by up to 45% since last year, when the crypto winter had already settled in.
Although the market shows signs of recovery, it’s important to note that untoward developments can come out of the left field at any moment – and even a false alarm can trigger a sell-off that may discourage newer investors. The golden rule still stands – before any investment, Do Your Own Research.
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