NY Investor H.C. Wainwright Says Crypto Winter Is Over
Analysts at H.C. Wainwright think the worst is over, and now is a good time to invest in the world of cryptocurrencies.
The top New York financial bank H.C. Wainwright has told its clients that crypto winter is finally over.
Also, crypto lending platforms that have been able to survive the storm will be in a great position to make money from a possible future hype train. Coinbase is the best example of one of these platforms.
Scarcities Increase Value
Mike Colonnese, an analyst at H.C. Wainwright, says that Coinbase is in a unique situation to profit from the rumored future bull run because it is a unicorn, which means it is a high-value crypto company that is publicly traded. Because of this, Coinbase’s stock, COIN, can be seen as a rare product that should do well in a bull market.
“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.”
Also, Colonnese thinks that buyers who want to get into the market should do so now because the price of COIN has dropped by 85% since its all-time high (ATH). At the moment, each share of COIN is worth $40. But Colonnese said that if everything goes as planned, the price of the stocks could go up to $75 in the near future.
When figuring out how Coinbase might do in the future, the SEC’s recent moves against different crypto platforms are also taken into account. But Colonnese says that the SEC usually acts against financial services that offer stake services. Coinbase was lucky that staking only made up 3% of its income last year.
Potential Bull Run
Colonnese adds to his point by showing recent charts of Bitcoin’s growth, which show that the price of the asset seems to have not only steadied but also started going up. In turn, crypto markets, which are still very dependent on BTC’s value, have grown by up to 45% since last year, when the crypto winter had already set in.
Even while the market is recovering, unexpected events can cause a sell-off that may deter prospective investors. Do your own research before making any investment. This is still the best rule.
