{"id":1239,"date":"2022-11-23T11:26:45","date_gmt":"2022-11-23T11:26:45","guid":{"rendered":"https:\/\/tradersontrend.com\/?p=1239"},"modified":"2022-11-23T11:26:45","modified_gmt":"2022-11-23T11:26:45","slug":"crypto-meltdown-widens-stock-price-gap","status":"publish","type":"post","link":"https:\/\/tradersontrend.com\/h\/2022\/11\/23\/crypto-meltdown-widens-stock-price-gap\/","title":{"rendered":"Stock Prices Diverge in Crypto Market Crash"},"content":{"rendered":"

Even\u00a0Wall<\/a><\/span>\u00a0Street’s<\/a> top analysts struggle to forecast a stock’s price a year from today. However, for investors who bought into the high predictions surrounding crypto-related equities at the start of this year, those estimates now appear to be pipe dreams.<\/span><\/p>\n

The average return required to attain their 12-month price objective from Jan. 1 for ten crypto companies tracked by Bloomberg having at least three analyst price targets at the start of 2022 is approximately 1,350%. To put it in context, it took Amazon.com Inc. more than eight years \u2013 from 2013 to its record high in late 2021 \u2013 to return that amount to investors.<\/p>\n

To hit their average 12-month analyst price prediction from the beginning of this year, shares of cryptocurrency exchange Coinbase Global Inc.<\/a> would need to rise 782% from their current level. Still, it pales in comparison to Stronghold Digital Mining, Inc., which began the year with a target of $41.25 and is now trading for less than a dollar per share, requiring a 5,492% increase to reach that level.<\/p>\n

The main cause of the unbalanced estimates is this year’s rapid drop in the price of Bitcoin, which hit 65% following the bankruptcy of Sam Bankman-FTX. Fried’s In early November 2021, the world’s greatest digital asset reached a record high of about $69,000, generating a surge of bullish excitement for almost anything related to space.<\/p>\n

Nonetheless, analysts were sluggish to respond to Bitcoin’s sudden drop. The average analyst price estimate for Coinbase grew by almost 5% in the two months following Bitcoin’s all-time high. During the same time frame, Bitcoin fell more than 38% and Coinbase’s stock price fell roughly 37%. Analysts have reduced their 12-month price objective for the cryptocurrency exchange by an average of 80% since then.<\/p>\n

BTIG analyst Mark Palmer became the latest to downgrade his outlook for crypto bank Silvergate Capital, lowering his base case prediction to $51 per share on Tuesday, down from the $135 price at which he launched the stock in August.<\/p>\n

“Our new price target reflects our decreased forecasts for digital asset customer deposits on the Silvergate Exchange Network in the aftermath of FTX’s failure and amid the ongoing ‘crypto winter,'”<\/em> Palmer wrote in a note to clients.<\/p>\n

Nonetheless, Palmer maintained his buy rating on the stock, calling it “extremely inexpensive,” while noting that the share price loss “has been attributable in part to a broad lack of understanding of the company, its balance sheet, status as a regulated bank, the SEN, and the SEN Leverage program.”<\/p>\n

He is not alone in keeping his bullish conviction. Silvergate’s current average price target, which has dropped more than 80% this year, expects the stock to approximately double its present level over the next year.<\/p>\n

It’s a similar tale to other crypto stocks. The average 12-month return from present prices is around 165% among the 10 companies tracked by Bloomberg, compared to almost 110% at the start of this year.<\/p>\n

For More Stocks And Investment Related News, Click Here<\/a>.<\/em><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

Even\u00a0Wall\u00a0Street’s top analysts struggle to forecast a stock’s price a year from today. However, for investors who bought into the high predictions surrounding crypto-related equities at the start of this year, those estimates now appear to be pipe dreams. The average return required to attain their 12-month price objective from Jan. 1 for ten crypto…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[156,161,323,567,570,572,577],"class_list":["post-1239","post","type-post","status-publish","format-standard","hentry","category-newsletter","tag-crypto","tag-cryptocurrency","tag-investment-news","tag-stock-market","tag-stock-price","tag-stocks","tag-stocks-news"],"_links":{"self":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/comments?post=1239"}],"version-history":[{"count":0,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1239\/revisions"}],"wp:attachment":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media?parent=1239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/categories?post=1239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/tags?post=1239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}