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Cryptocurrency Stocks Rally as Cryptocurrencies Try to Come Back

The cryptocurrency market of late has been a maelstrom of instability. For cryptocurrency stocks like Coinbase (NASDAQ: CURRENCY), Silvergate Capital (New York Stock Exchange: YES) and Microstrategy (NASDAQ:MSTR), has been no different. However, all three rose in trading on Friday, thanks to a general recovery in cryptocurrencies such as bitcoin (USD-BTC).

The good news was that the market largely dismissed the whole notion of Sam Bankman-Fried and FTX contagion. However, there is no shortage of other risks in the market. The threat of further DOJ involvement, some additional restrictions on cryptocurrency mining, and more may weigh on the cryptocurrency market. The recent statements of Nouriel “Dr. Doom” Roubini couldn’t have helped either. When a major name like that calls most of the market “a scam,” it rarely bodes well.

However, one important point shone from WOO Network co-founder Jack Tan. Tan noted that strong companies are likely to gain market share. Meanwhile, weaker companies are losing ground. That sounds like a classic description of not a dying market… but one that is maturing. He just consider Genesis Global Holdco which is seeking to file for bankruptcy, and lender Nexo which was fined $45 million following an SEC investigation.

In fact, all three of these stocks have their own risk profiles to consider. The analyst consensus views both Coinbase and Silvergate Capital as holds while assigning a Moderate Buy rating to Microstrategy. Coinbase’s average price target of $56.52 gives its shares a meager 2.49% upside potential. However, Microstrategy shares have 99.05% upside potential.

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