Monday was a good day for cryptocurrency stocks, but investors should remain cautious. Jefferies’ coverage of Coinbase is encouraging, but the New York ban on crypto operations could have an effect as well. It will be important to stay up to date on news developments in order to make the most informed investment decisions.
Many companies connected to bitcoin saw a boost in their share prices, including Coinbase (COIN:NSD), Microstrategy (MSTR:NSD), and Riot Blockchain (RIOT:NSD). While there are indications that the positive trend may continue, there are also signs that it may not.
Jefferies analyst Trevor Williams has provided coverage on cryptocurrency exchange Coinbase, assigning it a Hold rating but also noting that it is one of the most likely prospects to survive a major downturn in the market. Williams was impressed by Coinbase‘s strong balance sheet, which currently holds more than $5 billion in ready cash, as well as its “front–footed approach to regulatory compliance.” This could help it avoid regulatory troubles and provide confidence to investors.
The Latin American cryptocurrency exchange Airtm recently announced that it is pulling out of trading altogether and switching its holdings to a local stablecoin, Airusd. The decision is a sign of a larger trend among cryptocurrency businesses to move their operations away from New York in response to the state’s partial ban on cryptocurrency mining.
The New York State Department of Financial Services issued its ban on cryptocurrency mining on April 15th, citing the potential harm to the environment. Furthermore, the ban included a clause that could potentially expand the scope of the legislation to cover other cryptocurrency operations. This has caused many crypto businesses to move their operations away from New York, fearful of the potential implications of the ban.
The decision by Airtm to switch its holdings to Airusd reflects this trend. Airusd is a local stablecoin, which is a type of cryptocurrency designed to maintain a stable value. Airtm believes that Airusd will be able to provide the same level of stability and trust that traditional fiat currencies do.
The move by Airtm and the potential expansion of the New York ban illustrates the changing landscape of the cryptocurrency world. While this may drive up the value of some cryptos due to reduced supply, it could also have a chilling effect on the industry as a whole. It remains to be seen what the long-term implications of these changes will be.
Investor sentiment is bullish on Microstrategy and Marathon Digital (MARA:NSD) when it comes to cryptocurrency stocks. According to consensus estimates, Microstrategy shares have an upside potential of 172.74%, with an average price target of $477.33 per share. Similarly, Marathon Digital has an average price target of $15 per share, offering a 205.5% upside potential. Both stocks have been rated as Moderate Buys by investor consensus.
