Financial services firm Bernstein has initiated coverage of online trading platform Robinhood with an “outperform” rating and a price target of $30 per share, citing an anticipated “monster” cryptocurrency market cycle.
In a research report, first covered by CoinDesk, Bernstein analysts predicted a “monster” crypto cycle, forecasting the total market capitalization to skyrocket to $7.5 trillion by 2025, nearly triple its current value of $2.6 trillion. This surge, the report argues, would translate into significant growth for Robinhood’s cryptocurrency revenue, potentially increasing by a factor of nine.
Bernstein’s bullish outlook extends beyond Robinhood, with projections for individual cryptocurrencies including Bitcoin’s market cap being expected to reach $3 trillion by 2025, up from its current $1.43 trillion market capitalization, which could mean BTC’s price would double by next year to over $140,000.
Ethereum ($ETH), the second-largest cryptocurrency by market capitalization, was forecasted to hit $1.8 trillion, up from its current level of $472.9 billion, which would see Ethereum’s price top the coveted $10,000 mark to trade around $15,000, up from its current $4,000 level.
The report also projects a combined market cap of $1.4 trillion for other leading blockchain tokens, with analysts Gautam Chhugani and Mahika Sapra writing they believe “the crypto market is experiencing unprecedented levels of institutional adoption.”
This trend, they predict, could lead to a surge in assets under management for a spot Bitcoin exchange-traded fund (ETF) to as high as $300 billion by 2025, while also predicting the launch of a spot Ethereum ETF within the next year.
The firm, as CryptoGlobe reported, has predicted Bitcoin could see its price surge to $150,000 over the next 18 months, driven by a wave of institutional adoption and its upcoming halving event.
Bitcoin’s upcoming halving, set to occur in mid-April, is part of a fixed schedule meant to reduce the amount of Bitcoin being produced. Bitcoin halvings occur every 210,000 blocks – roughly every four years – and have the potential to significantly impact Bitcoin’s price by reducing available supply.
Historically, the halving has been a bullish event, with the price of the cryptocurrency surging in the months that follow it. While some analysts anticipate a pre-halving slump, Bernstein remains bullish, predicting the halving will act as a catalyst for the projected $150,000 price point.
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