Wall Street banking giant Goldman Sachs has identified an emerging cluster of crypto-related stocks that are performing much better than the index itself.
In a note to investors on Tuesday, April 27, analysts at the investment bank highlighted 19 U.S. stocks that had a market capitalization of more than $1 billion and close ties to the cryptocurrency and blockchain industry.
Goldman’s investment gurus stated that many of these stocks have “dramatically outperformed” the broader stock market, with the firms averaging a return of 43 percent this year, which is more than three times the 13 percent that the S&P 500 has gained over the same period.
The leading two stocks were crypto mining companies Marathon Digital Holdings and Riot Blockchain with gains of 218 percent and 151 percent year to date respectively.
Tesla has also had a solid year with the stock reaching an all-time high of $883 in January a couple of weeks before its announcement it had invested $1.5 billion into Bitcoin. Facebook has also been cited as a big dabbler in the space with plans to launch its own cryptocurrency this year.
Another of Bitcoin’s corporate backers was MicroStrategy, which saw its stock price explode in mid-April just before Bitcoin itself hit an all-time high of $65,000. Goldman estimates that the company has BTC holdings valued at around $4.5 billion.
Jack Dorsey’s payments firm Square has also poured money into crypto assets with a $220 million Bitcoin buying spree. Other payment giants leaning heavily towards crypto include PayPal, MasterCard, and Visa which are all offering some forms of digital asset payments and even trading in some instances.
Goldman analysts noted that two big banks, BNY Mellon and JPMorgan Chase, have spearheaded blockchain adoption through crypto custody and interbank transactions.
The list was rounded out with U.S. exchange Coinbase, exchange operator Overstock.com, blockchain pioneer IBM, microchip maker Nvidia, and financial services firms InvestView, Broadridge Financial, and Ideanomics.
In a note to clients last week, Dan Ives, an analyst at investment firm Wedbush Securities painted the bigger picture:
“The story and theme here are much larger than just investing in Bitcoin and predicting its potential price path… It’s about the potential ramifications that crypto, blockchain, and Bitcoin could have across the corporate world for the next decade.”
It has been reported that there have been hundreds of funds making significant investments into the crypto and blockchain industries despite the lack of a U.S. Bitcoin ETF.
Cardano (ADA) Surges to New All-Time High of $2.37
Cardano (ADA) has continued its bullish momentum as the project saw a new all-time high reached on Saturday, touching $2.37 on Binance.
Following a tumultuous week of volatility in the market, ADA has seen a new all-time high reached over the weekend. Breaking past the $2 mark.
ADA had previously tested a new high one week ago. However, comments made by Tesla CEO Elon Musk regarding the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions” triggered a market sell-off. ADA slumped to a weekly low of $1.50 before continuing its rally towards another all-time high.
The cryptocurrency is currently hovering over $2. With an impressive 25 percent gain in the last week. ADA had previously hit a new high eight days ago. Before seeing three more days of new highs.
Crypto analyst Benjamin Cowen recently tweeted a poll asking “What crypto will be the third coin to make it to $200B market cap?” Surprisingly out of BNB, DOGE, and XRP, ADA was currently the favorite in ratings. With neatly 10,000 votes, ADA was leading the poll with 57 percent of the votes. With BNB coming in second with 24 percent.
Popular forex and crypto trader Peter Brandt had previously tweeted a price target for ADA. Brandt speculates that the price of ADA should hit $2.26 based on his “ballpark” target analysis.
Cardano recently announced it would be launching its Alonzo hard fork in May. The announcement will see the Goguen era of Cardano’s roadmap fulfilled.
The upgrade is set to implement secure smart contracts. The smart contract capabilities will be based on Plutus’s custom-build programming framework.
Furthermore, Input-Output, the parent company of Cardano, has recently partnered with World Mobile Group. The partnership is set to provide affordable network nodes through the Cardano blockchain infrastructure.
The African partnership will allow citizens to backup copies of important documents through the blockchain.
Ada currently has a market capitalization of $72 billion taking the fourth position on coinmarketcap.
Experts Predict Ethereum Price to Hit $19,842 by 2025
Thirty-five experts have come together to predict the price of ethereum, the second-largest cryptocurrency after bitcoin. On average, they expect the price of ether to hit $19,842 by 2025. The majority of panelists say now is the time to buy ethereum while 28 percent say to hodl.
The “Finder Cryptocurrency Predictions 2021” which was updated Monday predicts that the price of ether will be nearly $20K by 2025 according to 35 experts on Finder’s cryptocurrency panel. The report says: “By 2025, the panel expects Ethereum to hit $19,842 on average.”
The ethereum price, after beginning the year at under $1,000 per ether token, has smashed through $4,000—climbing alongside bitcoin and most other major cryptocurrencies.
Now, an expert panel has predicted ethereum is set to soar to almost $20,000 by 2025, an increase of 400 percent from its current price, with “major upgrades” to the ethereum network potentially pushing it higher.
The highest forecast came from Bitbull Capital COO Sarah Bergstrand who believes that the price of ether would be $100,000 by 2025. “We are likely to see major upgrades to the Ethereum network this year, and those can be expected to push the price higher,” she explained.
One of the most bearish forecasts came from UNSW associate professor Elvira Sojli who predicted that ETH will end 2025 at just $1,850.
The report continues: “The majority of panelists (59 percent) say now is the time to buy ethereum, while 28 percent say ‘hodl’ and 13 percent say it’s time to sell.”
As for the price prediction for the year 2021, the report notes that the “Panellists predict that the price of Ethereum will hit $4,512 on average by the end of the year. That’s a 234% increase from December’s end-of-year prediction of $1,351.”
One of the highest forecasts came from YAP Global founder and CEO Samantha Yap who noted that the price of ether would be $10,000 at the end of this year, emphasizing that “once BTC is mass adopted, ETH will be next on people’s list.”
Paul Ennis, a lecturer and assistant professor at the University College of Dublin, arrived at the same forecast of $10K for ETH this year, “arguing ethereum is highly undervalued and has far more uses than bitcoin.”
LMAX Group’s cryptocurrency strategist, Joel Kruger, gave a more moderate forecast of $2,000. He is also convinced of “ethereum’s potential, viewing the currency as the major hub of innovation on the blockchain.” He described that “As crypto adoption continues, most of that innovation will therefore be hosted on Ethereum, which we expect will translate into a much higher valuation.”
The panelists include Bitriver CEO Igor Runets; Thomson Reuter’s technologist Joseph Raczynski; Okcoin COO Jason Lau; Etoro analyst and senior account manager Simon Peters; Consensys head economist Lex Sokolin; Coinmama CEO Sagi Bakshi; Unocoin CEO Sathvik Vishwanath; and Origin Protocol co-founder Josh Fraser.
Tesla Suspension Won’t Derail Bitcoin, It’s Still a Buy- Says Bloomberg’s McGlone
Elon Musk’s concern that bitcoin might be bad for the environment isn’t enough to derail the cryptocurrency’s potential for further price gains, said Bloomberg Intelligence commodity strategist Mike McGlone.
McGlone in a new report on Thursday wrote “Elon Musk saying Tesla is suspending purchases using bitcoin doesn’t shake our thesis that the crypto is in early price discovery days on its way to becoming the global digital reserve asset in a world of accelerating digitalization and electrification.”
The report follows a 13 percent drop in the price of bitcoin, the most in a single day in almost four months. The drop was prompted by Musk, Tesla’s CEO, saying late Wednesday the electric-car company was ending its bitcoin-for-cars offer made earlier in the year. That Feb. 8 announcement drove up bitcoin’s price so dramatically – by 19 percent – that it was lionized by some fans of the cryptocurrency as “Elon’s candle,” in a reference to the resulting pattern on price charts.
Now, bitcoin analysts are scrambling to adjust their price forecasts and respond to concerns about bitcoin’s energy needs contribute to fossil-fuel burning, making it a climate threat at a time when environmental, social and governance concerns are becoming more important to institutional investors.
McGlone is considered a hot hand in cryptocurrency markets because he accurately forecasts bitcoin’s price rise to $50,000 last year, at a time when it was trading at just a fraction of that level.
What matters the most, according to McGlone, is the source of the Bitcoin network’s energy.
“The source of electricity is increasing from solar and wind, which are cost effective,” according to the report. “On a global scale, electricity is going renewable.”
Musk’s remarks about the crypto’s electricity consumption are “odd” coming from an automaker whose product is “fed solely by electricity,” the analyst wrote.
McGlone wrote that bitcoin “shows comfort at the whole-number level around $50,000, which was our initial call on a 2021 target resistance value.”
“The rule of money flowing to where it’s treated best looks like an enduring tailwind for bitcoin,” he wrote.
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