On Monday, equity analysts at Needham & Company increased their price target for Coinbase to $420 from their previous price target of $375 a share.
The target review is quite familiar, as Needham had previously projected a 467% increase in Coinbase’s revenue in 2021. However, in this case, Needham projects a 12% increase from $375 in December 2024.
By this raise, Needham’s analysts anticipate that Coinbase will generate substantial results in the fourth quarter of 2024 and the following year, giving the stock a “buy” rating.
Needham analysts say retail activity is returning
The analysts point to the improving market conditions and interest in cryptos as a factor.
“The price target increase is driven by significant retail activity returning to the crypto market, with December volumes on track to be the highest ever,” the analysts said. “Elevated volatility, particularly with Bitcoin around $100,000, and a rise in altcoin activity are major contributors to this volume surge.”
Coinbase’s shares have increased by more than 80% this year, especially following Donald Trump’s victory in the November presidential election. Also in the days around the presidential election, the company’s shares surged from less than $200 to over $300 per share.
The analyst predicts that: “For Q4 2024, total volume is expected to reach $435 billion, with revenue at $2.1 billion and EPS at $2.37 per share […] For 2025, revenue is projected at $8.9 billion with an EPS of $9.61 per share.”
Many buyers who like crypto but are not confident enough to invest in the market see putting money into Coinbase as a roundabout way to bet on crypto.
Altcoins trading activity is returning
Reports say that the market value of all altcoins, besides the top 10 crypto, has gone over $425 billion for the first time since November 2021. Last week, this significant target was reached, marking a big change in the bitcoin market.
Altcoin Market Cap has Weekly Closed above $425bn (black) for the first time since November 2021#BTC #Crypto #Bitcoin pic.twitter.com/TtvCpdeiTA
— Rekt Capital (@rektcapital) December 9, 2024
The rise in the market cap of altcoins underscores the increasing interest and investment in crypto that is not as well-known as the prominent ones, such as Bitcoin and Ethereum. This trend indicates that investors are diversifying their portfolios and investigating opportunities in digital assets that are less well-known.
The altcoin market has also experienced a 138% increase in capital inflows over the past five weeks. The surge was led by utility coins such as XRP, XLM, ADA, and VET, as well as newer cryptocurrencies and meme coins, which experienced substantial gains.
In the forthcoming weeks and months, analysts predict that the altcoin market will continue to expand, with Trump assuming the office of the President.
Is the alt season permanent – 2025 predictions
CryptoQuant CEO Ki Young Ju recently opined that the alt season may no longer be driven by capital rotation from Bitcoin, Cryptopolitan reported.
Bitcoin has been outperformed by 73% of the top 50 altcoins in the past 90 days. The 75% threshold is being approached as this index has experienced a significant increase in the past few days.
However, analysts think that the first month of 2025 will have some small declines. They stress how important it is to be careful in January 2025 and say that Bitcoin will drop below $95K and Ethereum will either test its all-time high (ATH) or even drop below it. Also, the altcoin market could experience a 30% to 50% drop during this time.
According to predictions, the crypto market might pick up speed again from February to April 2025 before the end of the first quarter of 2025. Bitcoin could reach as much as $160,000, and Ethereum could reach around $10,000. That time will also be good for altcoins, and the market for them could reach a new all-time high.
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