Monday turned out to be a great day for cryptocurrency stocks. From Coinbase (NASDAQ: CURRENCY) to Microstrategy (NASDAQ:MSTR) to Riot Blockchain (NASDAQ: MOVEMENT) and beyond, if you were connected to bitcoins, there is a good chance that it will rally today. There are even signs that the positive momentum will continue, although there are also signs that it won't.
One of the biggest markers of good news came from Jefferies' trevor williams, who provided coverage on Coinbase and gave a mixed review. While he assigned a hold rating, he also noted that it was one of the most likely prospects to survive a cryptocurrency downturn. Among other factors, Williams pointed to a strong balance sheet with over $5 billion in cash and a "...front-end approach to regulatory compliance." That should keep you out of the way of regulators and instill some confidence in investors.
However, there is darker signs on. The popular Latin American exchange Airtm withdrew from trading entirely and shifted its holdings to a local stablecoin, Airusd. Additionally, there are signs that the partial ban on cryptocurrency mining in New York may be expanded to cover more cryptocurrency operations. This can increase the value of some cryptocurrencies thanks to reduced supply. However, crypto firms are already flagging their operations out of New York as a result.
Meanwhile, there are clear winners and losers when looking at cryptocurrency stocks. For example, investor consensus calls Microstrategy stock a Moderate Buy.with upside potential of 172.74% thanks to an average price target of $477.33 per share. Meanwhile, the investor consensus views Marathon Digital as a Moderate Buy. Its shares also offer 205.5% upside potential based on a $15 per share average price target.
