In a recent report, Wall Street institution Citigroup has reaffirmed its positive outlook on digital asset stocks despite a significant downturn in the cryptocurrency market. Analysts, led by Peter Christiansen, emphasized their continued bullish stance, stating, “Despite recent token volatility, we remain bullish on digital assets stocks.”
Among the companies highlighted, Citigroup has identified Circle Financial (CRCL), the issuer of the USDC stablecoin, as their top recommendation. The bank has maintained a price target of $243 for CRCL, even as the stock has experienced a considerable decline down to $83.60.
Following Circle Financial, Citigroup analysts have also pointed to Bullish (BLSH) and Coinbase (COIN) as strong contenders within the sector. Christiansen noted that Bullish is strategically positioned to benefit from an uptick in institutional interest, particularly in the U.S., and has adjusted its price target for BLSH from $77 to $67, which still indicates significant upside potential from its current price of $44. Meanwhile, Coinbase”s price target remains unchanged at $505, substantially above its current trading value of $242.
Citigroup also revised its outlook for MicroStrategy (MSTR), lowering its price target from $485 to $325, yet this still signals a promising potential upside of approximately 100% based on its recent trading around $160.
Additionally, the bank expressed a favorable view of bitcoin mining company Riot Platforms (RIOT), although its price target was reduced from $28 to $23. At present, Riot shares are trading at about $14. In a further adjustment, Citigroup has lowered the price objective for Gemini (GEMI), now set at $13 from a previous target of $16, citing intensifying competitive pressures in the market. On Friday morning, Gemini shares were trading near $11.
Citigroup”s report comes amid a backdrop of broader market concerns, as recent fluctuations in the prices of major cryptocurrencies like bitcoin have raised alarms among investors. However, the bank remains optimistic about the potential for recovery, suggesting that liquidity conditions may soon shift.
