In a recent Bloomberg report, it has been revealed that the market value of crypto assets is expected to witness a remarkable surge, nearly tripling to $7.5 trillion by 2025. 

The next few years are likely to usher in a “monster of a crypto cycle,” according to Wall Street research firm Bernstein. In addition, Bernstein analysts have an “outperform” rating on the stock as they initiate coverage of online brokerage Robinhood Markets. 

Analyst Gautam Chhugani believes investors should take advantage of the opportunity to ride the “crypto comeback arc,” envisioning a “ninefold increase” in Robinhood’s crypto trading volume over the next two years.

Chhugani expressed his confidence in Robinhood’s prospects, stating that now is the opportune time to enter the market with an 18-24 month window to capitalize on the crypto resurgence. Assigning a price target of $30 to the stock, Chhugani’s price target is currently the highest among analysts tracked by Bloomberg.

Following the publication of positive February operating data, which included increases in assets under custody and surging trade volume, Robinhood shares surged as much as 12% in New York trading, reaching the highest intraday level since December 2021. 

So far this year, the stock has gained over 40%. However, Wall Street remains cautious about its outlook, with six analysts rating the stock as a buy, ten suggesting a hold, and three recommending selling.

With the anticipated growth of crypto assets from $2.6 trillion to $7.5 trillion, the largest digital currency, Bitcoin, is set to become a $3 trillion asset by 2025. According to Chhugani, this surge is expected to be fueled by the “unprecedented success” of exchange-traded funds (ETFs) tied to the cryptocurrency. 

Additionally, Chhugani predicts that Bitcoin will reach a high of $150,000 next year. He emphasized the ongoing institutional adoption of cryptocurrencies and expressed expectations for the continued success of the Bitcoin ETF and the potential launch of an Ethereum ETF within the next 12 months.

In the context of Robinhood, Chhugani highlighted the company’s “full suite crypto offering within a regulated broker platform,” which positions it favorably. Bloomberg notes that traditional broker platforms, such as Charles Schwab Corp., have been more hesitant in offering cryptocurrency services.

Summing up his bullish stance, Chhugani stated: 

In short, we are bullish on crypto, and we believe Robinhood’s crypto business resurgence will restore its fortunes with investors.

The projected exponential growth of the cryptocurrency market and the optimistic outlook for Robinhood’s crypto business have captured the attention of market observers. With the increasing mainstream acceptance and institutional adoption of digital assets, the next few years hold significant potential for investors and market participants alike.

Featured image from Shutterstock, chart from TradingView.com

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