Citigroup has updated its coverage of digital-assets stocks in light of recent widespread downturns in the cryptocurrency market but continues to express optimism about the sector’s long-term prospects. In a report released on Friday, analysts led by Peter Christiansen emphasized their positive outlook, stating, “Despite recent token volatility, we remain bullish on digital assets stocks.”
Among their top investment picks is Circle Financial (CRCL), the issuer of the USDC stablecoin. Despite a significant drop in the stock price to approximately $83.60, Citi has maintained a price target of $243 for Circle, highlighting the bank’s confidence in the company’s future performance.
Following Circle, Citi identified Bullish (BLSH) and Coinbase (COIN) as promising investments. Analysts noted that BLSH stands to benefit from the increasing participation of institutional investors and traditional finance firms in the U.S. Although the price target for BLSH was lowered from $77 to $67, this still represents considerable upside potential from its current value of $44. Meanwhile, Coinbase’s price target was held steady at $505, significantly above its current trading price of $242.
Additionally, digital assets firm MicroStrategy (MSTR) received a revised price target, which was cut to $325 from a previous $485, reflecting its recent decline to around $160. This new target suggests a potential upside of approximately 100%.
Citigroup also maintains a positive stance on Riot Platforms (RIOT), a bitcoin mining company, though its price target was adjusted from $28 to $23. Following recent market movements, Riot’s shares were trading near $14.
In a separate assessment, the bank lowered its price target for neutral-rated Gemini (GEMI) to $13 from $16, citing “increasing competitive challenges.” On Friday morning, shares of Gemini traded at about $11.
This reevaluation of price targets comes amid broader concerns in the cryptocurrency market, with analysts noting that weakness in bitcoin prices could serve as a warning sign for stocks, although they suggest that liquidity conditions may soon shift in a more favorable direction.
