Cryptocurrency Stocks Recover as Cryptos Try Making a Comeback
The cryptocurrency market of late has been a maelstrom of instability. For cryptocurrency stocks like Coinbase (NASDAQ:COIN), Silvergate Capital (NYSE:SI), and Microstrategy (NASDAQ:MSTR), it hasn’t been different. However, all three were up in Friday’s trading, thanks to a general recovery of cryptocurrency such as bitcoin (BTC-USD).
The good news was that the market largely dismissed the entire notion of contagion from Sam Bankman-Fried and FTX. There is no shortage of other risks in the market, however. The threat of further Justice Department involvement, some further restrictions on cryptocurrency mining, and more may weigh on the crypto market. The recent remarks from Nouriel “Dr. Doom” Roubini couldn’t have helped matters either. When a major name like that calls most of the market “a scam,” it seldom bodes well.
However, one major point shined through from WOO Network co-founder Jack Tan. Tan noted that strong businesses are likely to gain market share. Meanwhile, weaker businesses lose ground. That sounds like a classic description, not of a dying market…but a maturing one. Just consider Genesis Global Holdco looking to file bankruptcy, and the lender Nexo that was fined $45 million following an SEC investigation.
Indeed, these three stocks all have their own risk profiles to consider. Analyst consensus considers both Coinbase and Silvergate Capital as Holds while assigning a Moderate Buy rating to Microstrategy. Coinbase’s average price target of $56.52 gives its stock a meager 2.49% upside potential. However, Microstrategy’s stock comes with 99.05% upside potential.