The crypto winter is over, says New York investment bank HC Wainwright

The crypto winter is over, says New York investment bank HC Wainwright

HC Wainwright, a leading New York investment bank, has informed its investors that the crypto winter is finally over.

Additionally, crypto lending platforms that have weathered the storm will be uniquely poised to benefit from a likely future hype train – most notably Coinbase.

Scarcity increases value

In the words of HC Wainwright analyst Mike Colonnese, Coinbase's unicorn status as a high-quality, publicly traded crypto company makes it uniquely positioned to benefit from the alleged future bull run. As a result, Coinbase stock, COIN, can be viewed as a rare asset that is expected to perform well in any bull market.

“Finally, we view COIN as a scarce commodity, as Coinbase is the only publicly traded crypto-native company in the US with a market cap of over $10 billion, meaning that competition for investor capital is extremely limited given the current regulatory environment for crypto, we believe it is unlikely that Coinbase’s scarcity value will change in the near term.”

Additionally, Colonnese believes there is no time like the present for investors looking to get in on the market to get in on the action, citing an 85% price decline since COIN's ATH. Currently, COIN is valued at $40 per share. However, Colonnese claimed that the share price could rise to $75 in the near future, assuming everything goes according to plan.

The analysis of Coinbase's possible future performance also takes into account the SEC's recent actions against various crypto platforms. However, Colonnese notes that the SEC generally cracks down on staking services offered by financial services providers. Luckily for Coinbase, staking only accounted for 3% of its revenue last year.

Bull Run supposedly on the horizon

Colonnese further supports his argument by sharing recent Bitcoin growth charts and concluding that the asset's price appears to have not only stabilized but has entered an upward trend. Crypto markets, on the other hand – which are still heavily dependent on the value of BTC – have risen by up to 45% since last year, when the crypto winter had already taken hold.

Although the market is showing signs of recovery, it is important to note that adverse developments can come out of left field at any time - and even a false alarm can trigger a sell-off that could deter new investors. The golden rule still applies – before making any investment, do your own research.

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