In a recent Bloomberg reportit has been revealed that the market value of crypto assets is expected to see a remarkable increase, almost tripling to $7.5 trillion by 2025.
Wall Street Firm Predicts 'Monster of a Crypto Cycle'
The next few years are likely to usher in a “monster crypto cycle,” according to Wall Street research firm Bernstein. Additionally, Bernstein analysts have an “outperform” rating on the stock as they initiate coverage of online brokerage Robinhood Markets.
Analyst Gautam Chhugani believes investors should take advantage of the opportunity to ride the “crypto comeback arc,” envisioning a “nine-fold increase” in Robinhood crypto. trading volume over the next two years.
Chhugani expressed confidence in Robinhood's outlook, stating that now is an opportune time to enter the market with an 18-24 month window to capitalize on the crypto resurgence. Assigning a $30 price target to the stock, Chhugani's price target is currently the highest among analysts tracked by Bloomberg.
Following the release of positive operating data for February, which included an increase in assets under custody and an increase in trading volume, Robinhood shares jumped as much as 12% in New York trading, hitting the intraday level the highest since December 2021.
So far this year, the stock has gained more than 40%. Wall Street, however, remains cautious about its outlookwith six analysts rating the stock a Buy, ten suggesting a Hold, and three recommending a Sell.
With the predicted growth of crypto assets from $2.6 trillion to $7.5 trillion, the largest digital currency, Bitcoin, is expected to become a $3 trillion asset by 2025. According to Chhugani, this surge is expected to be fueled by the “unprecedented success” of cryptocurrency-linked exchange-traded funds (ETFs).
Additionally, Chhugani predicts that Bitcoin will reach a high of $150,000 next year. He highlighted the ongoing institutional adoption of cryptocurrencies and expressed his expectations for the continued success of the Bitcoin ETF and the potential launch of an Ethereum ETF within the next 12 months.
Robinhood positioned for success
In the context of Robinhood, Chhugani highlighted the company's “comprehensive crypto offering within a regulated brokerage platform,” which positions it favorably. Bloomberg notes that traditional brokerage platforms, such as Charles Schwab Corp., have been more hesitant to offer cryptocurrency services.
Summing up his bullish stance, Chhugani said:
In short, we are bullish on crypto and believe the resurgence of Robinhood's crypto business will restore its fortunes with investors.
The projected exponential growth of the cryptocurrency market and the optimistic outlook for Robinhood's crypto business have caught the attention of market observers. With the increase general acceptance and institutional adoption of digital assets, the coming years hold significant potential for investors and market participants.
Featured image from Shutterstock, chart from TradingView.com
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