- Bitcoin and most top cryptos hold above the 200-day average, despite recent declines.
- Bernstein lifts targets for Coinbase, Robinhood; Circle target unchanged as momentum cools.
- Crypto firms rush Nasdaq listings, balancing optimism with fears of fading liquidity.
The crypto market appears to be cooling after a recent rally, raising questions about whether this signals a pause or a deeper shift. According to Bernstein analysts, the long-term bull cycle remains intact, despite recent declines in prices across major digital assets. Bitcoin continues to trade above key technical thresholds, including the 200-day simple moving average, suggesting a broader uptrend remains active.
Market breadth indicators show 63 of the top 100 crypto coins remain above the 200-day average. Such figures indicate some loss of momentum, possibly as a result of profit-taking or macroeconomic prudence. Analysts have observed that investors are eliminating risk from portfolios before the incoming statements by the Federal Reserve chairman.
Firms Raise Forecasts Amid Short-Term Volatility
Bernstein has reaffirmed high price targets for several crypto-linked firms despite current market pullbacks. The brokerage raised its target for Coinbase shares to $510, citing a 44% rise in transaction revenues. The firm also raised Robinhood’s price target to $160, attributing the growth to a 110% month-over-month jump in crypto trading volume during July. Circle, the issuer of stablecoin USDC, maintained its $230 target, with projected supply reaching $173 billion by 2027.
These advances are indicative of optimism in the widening scope of institutional funding and regulatory backing to influence the future of crypto. The acquisition by Robinhood of Bitstamp is considered to be an important step to increase its presence in the institutional environment. The strategic buyout of Deribit by Coinbase is likely to enhance Coinbase’s derivatives product and competencies, as well as its infrastructure services. Such actions by the corporate world indicate that companies are positioning themselves for sustained growth, despite the overall tone of day-to-day trading activity slowing.
Nasdaq Filings Accelerate: Optimism or Risk Hedge?
Crypto firms are increasingly turning to public markets, with several seeking listings on the Nasdaq amid mixed signals in asset prices. Gemini and Figure Technologies’ recent filings were a dash to acquire capital before investors’ withdrawal of liquidity. The moves follow a list of previous listings, such as Circle, and aim to solidify market positions. Regulatory clarity and increased institutional participation appear to be driving confidence among issuers.
Nonetheless, other commentators raise the question that such listings imply either optimism or pessimism. The reason why the firms may be hedging could be due to the likelihood that there could be weakened liquidity or financial conditions towards the end of the year. The cooling under crypto-prices and the good long-term prospects pose a narrow opportunity interval. Firms would be able to obtain capital ahead of any future changes in the market by accessing capital markets now. Such an approach is consistent with a longer crypto cycle, as described by Bernstein, all through to 2027.
Nasdaq’s technical indicators mirror crypto trends, supporting the view of a synchronized pause across risk assets. Like the crypto sector, many Nasdaq stocks show long-term strength despite short-term underperformance. This parallel suggests external factors, such as central bank policy and macroeconomic data, are influencing both markets.
Related: Ethereum Holds Firm While Bitcoin Slides After PPI Data Release
Outlook: Extended Cycle or Early Correction?
Bernstein sticks to the opinion that the existing market conditions precondition the persistence of a crypto bull run. This is represented in the predictions made by the firm as to the value of Bitcoin as $200,000. It is stated that institutional adoption, policy alignment, and platform expansion are the essential aspects that facilitate this trajectory. The diversification of Robinhood and building up the infrastructure by Coinbase are suggested as business advantages.
However, in the short term, technical indicators are only signalling waning momentum, leaving traders indecisive. Risk is also a short-term concern, given that values are already at high levels and interest rates are being reevaluated. Is this a pause on the way up, or does it mark the first steps in the process of a more comprehensive downturn that has yet to be defined based on macroeconomic indicators and investor action? Crypto companies tapping the public markets today could be trying to lock in growth capital before more uncertainty sets in.
