Key Takeaways
Enthusiasm for cryptocurrency has gone "through the roof" since the re-election of President Donald Trump, analysts said Monday, which should lift shares of Coinbase Global ( COIN ).
Oppenheimer analysts earlier today set a price target on the crypto exchange's shares of $358, more than 17% above Friday's close. That's one of the higher targets on Wall Street, according to Visible Alpha data, well ahead of the average of $273.
"The sentiment and momentum for crypto has gone through the roof after Trump won the election and Republicans secured the majority of both House and Senate," Oppenheimer wrote. Regulation under President Biden and outgoing SEC Chair Gary Gensler "had deterred new capital going into this space, and many developers had pivoted to other industries. But the industry has a chance to rebuild the reputation, and Coinbase is leading this new chapter."
Coinbase Stock Has Risen 80% This Year
Shares of Coinbase recently were up almost 4% Monday as broader markets rose . The stock is up some 80% this year so far, rising post-election alongside bitcoin—recently flirting with the $100,000 level, though it has pulled back in recent days—and other crypto assets.
That could continue, according to Oppenheimer, with the Federal Reserve expected to continue cutting interest rates and investor appetite for crypto increasing.
"While many people still have [a] strong memory of the chaos and bankruptcy for crypto industry back in 2022, and how much [Coinbase] had declined, we would argue that it was primarily driven by the Fed's rapid rate hike and people misunderstanding crypto," Oppenheimer analysts wrote.