In a recent Bloomberg reportIt has been revealed that the market value of crypto assets is expected to witness a remarkable increase, nearly tripling to $7.5 trillion by 2025.
Wall Street Firm Predicts “Monster of a Crypto Cycle”
According to Wall Street research firm Bernstein, the coming years are likely to usher in a “monster of a crypto cycle.” Additionally, Bernstein analysts have an “outperform” rating on the stock because they cover online brokerage Robinhood Markets.
Analyst Gautam Chhugani believes investors should take advantage of the opportunity to ride the “crypto comeback arc,” envisioning a “ninefold increase” in Robinhood’s cryptocurrency. trading volume in the next two years.
Chhugani expressed his confidence in Robinhood’s prospects, stating that now is the opportune time to enter the market with a window of 18-24 months to benefit from the cryptocurrency 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 in February, including increases in assets under custody and rising trading volume, Robinhood shares rose as much as 12% in New York trading to reach their highest intraday level since December 2021.
So far this year, the stock is up more than 40%. However, Wall Street remains cautious about this prospectswith six analysts rating the stock as a buy, ten suggesting a hold and three recommending a sell.
With crypto assets expected to grow from $2.6 trillion to $7.5 trillion, the largest digital currency, Bitcoin, will become a $3 trillion asset by 2025. According to Chhugani, this surge is expected to be fueled by the “unprecedented success” of Exchange-Traded Funds (ETFs) linked to the cryptocurrency.
Moreover, Chhugani predicts that Bitcoin will reach a high of $150,000 next year. He highlighted the continued institutional adoption of cryptocurrencies and expressed expectations for the continued success of the Bitcoin ETF and the possible launch of an Ethereum ETF within the next twelve months.
Robinhood positioned for success
In the context of Robinhood, Chhugani highlighted the company’s “complete crypto offering within a regulated broker platform,” which positions the company favorably. Bloomberg notes that traditional brokerage platforms, such as Charles Schwab Corp., have been more hesitant to offer cryptocurrency services.
Summarizing his bullish stance, Chhugani said:
In short, we’re bullish on crypto, and we believe the revival of Robinhood’s crypto business will restore its fortunes with investors.
The expected exponential growth of the cryptocurrency market and the optimistic outlook for Robinhood’s crypto business have caught the attention of market observers. With increasing mainstream acceptance and institutional adoption of digital assets offer significant potential for both investors and market participants in the coming years.
Featured image from Shutterstock, chart from TradingView.com
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