Here’s why Bitcoin, Coinbase, and Silvergate Capital are up today. – The ₿log

The course of the largest cryptocurrency in the world, the bitcoin (BTC -0.08%), and several cryptocurrency-related stocks, including major cryptocurrency exchange Coinbase Global (COIN 3.87%) and cryptocurrency bank Silvergate Capital (SI 6.49% ), are all up today. The cryptocurrency market has been in recovery mode this week as Silvergate and Coinbase received positive sentiment from Wall Street.

The price of bitcoin had risen more than 4% in the past 24 hours, as of 3:07 p.m. ET today. Meanwhile, shares of Coinbase and Silvergate traded nearly 3.3% and 5.6% higher, respectively, during normal trading hours.

To analyse

Bitcoin is having a great week and recently hit around $43,971, which is close to its 2022 highs, after a major pullback that began last October. It is difficult to say exactly what led to this rally and there is no indication that it will last.

But Larry Fink, CEO of BlackRock, recently said in his annual letter to shareholders that Russia’s invasion of Ukraine will accelerate the rate at which central banks warm up and end up using digital assets.

“The war will cause countries to reassess their monetary dependencies,” Fink wrote in his letter. “Even before the war, several governments sought to take a more active role in digital currencies and define the regulatory frameworks within which they operate. »

Ukraine, for example, received around $100 million in crypto donations. Deputy Minister of Digital Transformation, Alex Bornyakov, recently said that since “the national bank is not really working, crypto helps to transfer quickly, to make things very fast and to achieve results almost immediately. »

The flip side is in Russia, where digital assets may help some in the country avoid sanctions. Russian lawmakers have also discussed accepting cryptocurrencies like bitcoin as payment for oil. Although there are good and bad results, it is likely that countries and their governments and central banks will look and think about cryptocurrencies differently now.

In other news, Silvergate and Coinbase saw a lot of bullish sentiment from Wall Street, as well as some negative sentiment.

Earlier this week, Bank of America analyst Brandon Berman initiated a buy rating on Silvergate and a price target of $200, implying a strong upside from current levels, even after a nice run up this week. week. Silvergate has built a proprietary real-time payments network that allows network parties to send and clear payments instantly, making it easier to trade cryptocurrencies. Parties who join the network bring large sums of deposits to Silvergate Capital, which the bank can deploy into higher-yielding assets when interest rates rise. The bank is expected to see profits soar amid rising rates.

Coinbase has also seen some action on Wall Street. Earlier this week, famed short seller Jim Chanos revealed that he and his fund are shorting the stock because they believe the company’s earnings are inflated.

But today, on Yahoo! Finance, MoffettNathanson analyst Lisa Ellis called Coinbase “a one-of-a-kind asset providing the infrastructure layer for the crypto economy.” MoffettNathanson maintained his Buy rating on Coinbase and has a price target of $600, implying a significant upside from Coinbase’s current stock price of around $190.

What’s next?

I certainly think Fink raises some interesting points about how crypto and digital assets have been positioned during the Russia-Ukraine conflict. Governments and central banks are likely to take a closer look at how they can use these new digital currencies.

I am very interested and uncertain right now as to how bitcoin will perform in the upcoming rate hike. But I’m bullish on Coinbase and Silvergate because I like companies that provide the infrastructure for the booming crypto industry, especially as the case for crypto adoption grows stronger every day. clear.

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Here’s why Bitcoin, Coinbase, and Silvergate Capital are up today. – The ₿log

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