In recent Bloomberg reportIt has been revealed that the market value of crypto assets is expected to witness a notable increase, nearly tripling to $7.5 trillion by 2025.
Wall Street Firm Predicts “Monster of a Crypto Cycle”
The next few years will likely usher in a “monster crypto cycle,” according to Wall Street research firm Bernstein. Additionally, Bernstein analysts have an “outperform” rating on the stock as it initiates coverage of online brokerage Robinhood Markets.
Analyst Gautam Chhugani believes investors should seize the opportunity to take advantage of the “crypto return arc,” predicting a “ninefold increase” in crypto from Robinhood. volume of business over the next two years.
Chhugani expressed his confidence in Robinhood Outlook, stating that now is the time of opportunity 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 operational data from February, which included increases in assets under custody and increased trading volume, Robinhood shares rose as much as 12% in New York trading, reaching their highest intraday level since December 2021.
So far this year, shares are up more than 40%. However, Wall Street remains cautious about its panoramawith six analysts rating the shares as buy, ten suggesting hold and three recommending 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, it is expected This surge is fueled by the “unprecedented success” of cryptocurrency-linked exchange-traded funds (ETFs).
Furthermore, Chhugani predicts that Bitcoin will reach a high of $150,000 next year. He emphasized the continued institutional adoption of cryptocurrencies and expressed expectations for the continued success of the Bitcoin ETF and the potential launch of an Ethereum ETF in the next 12 months.
Robinhood Positioned for Success
In the context of Robinhood, Chhugani highlighted the company’s “full suite of crypto offerings on 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.
Summarizing his optimistic stance, Chhugani stated:
In short, we are bullish on crypto and believe that the resurgence of Robinhood’s crypto business will restore its fortunes with investors.
The exponential growth projected for the cryptocurrency market and the optimistic outlook for Robinhood’s cryptocurrency business have caught the attention of market watchers. With the increase conventional 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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