Recently, the crypto-market has endured its fair share of turbulence. This includes assets like Coinbase (NASDAQ: CURRENCY), Silvergate Capital (New York Stock ExchangeYES) and Microstrategy (NASDAQ:MSTR), who were all affected by the volatility. However, in the most recent trading session, cryptocurrencies such as Bitcoin (USD-BTC) have seen an impressive surge in value.
It is worth noting that the industry has rejected the notion of a FTX contagion put forward by Sam Bankman-Fried. Nevertheless, there is still a great deal of risk in the crypto-asset sector, mainly due to the potential of further government intervention, the limitation of mining activities and other factors. This was recently highlighted by economist Nouriel “Dr. Doom” Roubini, who labeled the entire sector as a “scam”.
However, Jack Tan of the WOO Network made an interesting observation, which was that the sound companies will continue to thrive, whilst the weaker ones will be left behind. An example of this can be seen with Genesis Global Holdco filing for bankruptcy and the financial services firm Nexo receiving a hefty $45 million fine from the SEC.
It is important to remember that all three of these stocks carry a degree of risk. Analysts have assigned a Hold rating to Coinbase and Silvergate Capital, and a Moderate Buy to Microstrategy. The average price target for Coinbase is $56.52, giving them a modest 2.49% upside. On the other hand, Microstrategy shows a substantial 99.05% upside potential.
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