According to a recent Bloomberg report, the market value of crypto assets is expected to triple to $7.5 trillion by 2025, signaling a significant surge in the industry.
Wall Street research firm Bernstein predicts a “monster of a crypto cycle” in the coming years, and has given an “outperform” rating to online brokerage Robinhood Markets. Analyst Gautam Chhugani believes that the current market presents a great opportunity for investors to ride the “crypto comeback arc,” with the potential for a ninefold increase in Robinhood’s crypto trading volume in the next two years.
Chhugani is confident in Robinhood’s prospects, stating that now is the ideal time to enter the market with a window of 18-24 months to capitalize on the crypto resurgence. He has assigned a price target of $30 to the stock, the highest among analysts tracked by Bloomberg.
After the release of positive February operating data, including increases in assets under custody and trade volume, Robinhood’s shares saw a 12% surge in New York trading, reaching its highest intraday level since December 2021. So far this year, the stock has gained over 40%. However, Wall Street remains cautious about its outlook, with six analysts rating it as a buy, ten suggesting a hold, and three recommending selling.
With the projected 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. Chhugani attributes this surge to the “unprecedented success” of exchange-traded funds (ETFs) tied to the cryptocurrency. He also predicts that Bitcoin will reach a high of $150,000 next year, citing the ongoing institutional adoption of cryptocurrencies and the potential launch of an Ethereum ETF in the next 12 months.
Chhugani highlights Robinhood’s “full suite crypto offering within a regulated broker platform,” positioning it favorably in the market. Traditional broker platforms, such as Charles Schwab Corp., have been more cautious in offering cryptocurrency services, according to Bloomberg.
In short, Chhugani maintains a bullish stance on crypto and believes that Robinhood’s crypto business resurgence will restore its fortunes with investors.
As the cryptocurrency market continues to gain mainstream acceptance and institutional adoption, the next few years hold significant potential for investors and market participants alike. With the market cap currently at $2.6 trillion, as shown in the 1-D chart, the future looks promising for the crypto industry.
