H.C. Wainwright, a top New York investment bank, has informed its investors that the crypto winter has come to an end.
Moreover, crypto lending platforms that have survived the storm will have a unique advantage in profiting from an expected future bull run — with Coinbase being the leading contender.
Value Driven by Scarcity
According to H.C. Wainwright analyst Mike Colonnese, Coinbase’s unicorn status as a high-value, publicly traded crypto firm positions them uniquely to benefit from a future bull run. This makes Coinbase’s stock, COIN, a rare asset with good performance potential in any bull run.
«Finally, we consider COIN as a scarce asset. Coinbase is the sole publicly listed crypto company native to the US with a market cap above $10B. This scarce asset status means that competition for investor capital is minimal, and we do not anticipate any change to Coinbase’s scarcity value in the near future given the current landscape of cryptocurrency regulation.»
Moreover, Colonnese suggests that now is the perfect time for investors seeking to enter the market to do so, pointing out that COIN has suffered an 85% price drop from its all-time high. At present, COIN trades for $40 per share. However, Colonnese claims that the stock price could potentially soar to $75 in the near future, provided everything goes according to plan.
The analysis of Coinbase’s possible future performance also accounts for the SEC’s recent actions against various cryptocurrency platforms. However, Colonnese notes that the SEC’s actions primarily target financial services that offer staking services. Fortunately for Coinbase, staking only accounted for 3% of its revenue last year.
Alleged Bull Run on the Horizon
Further supporting his point, Colonnese shares recent Bitcoin growth charts, observing that the asset’s price seems to have stabilized while experiencing an upward trend. This has caused crypto markets — which remain tied to the value of BTC — to rise by as much as 45% since the crypto winter set in last year.
While the market shows indications of recovery, it’s important to note that unexpected events can pop up at any moment, and even a false alarm can lead to a sell-off that may discourage newer investors. Therefore, the golden rule of conducting your own research before any investment still stands.