Regulatory clarity and institutional adoption could drive bitcoin this year to more than double its current price, according to H.C. Wainwright.
The firm raised its price target on the flagship cryptocurrency to $225,000 from $145,000, it said in a note to investors Thursday, implying upside of more than 130%.
The new price target implies a total market cap of $4.5 trillion, which would represent about 25% of the total market cap of gold, he added.
"BTC price action has historically been highly correlated to global liquidity (as measured by M2), which has been on a downtrend since October," Colonnese said.
Investors are hopeful that Congress will provide long awaited crypto-focused legislation, and any regulatory clarity could drive further investment in bitcoin from advisor allocations as well as public companies adding the crypto asset to their treasuries, according to H.C. Wainwright.
Persons:
Wainwright, Mike Colonnese, Colonnese, Cynthia Lummis, Donald Trump, — CNBC's Michael Bloom
Organizations:
BTC
Locations:
U.S, Wyoming, bitcoin