The report forecasts that the total crypto market capitalization will nearly triple to reach $7.5 trillion by the year 2025

Bernstein initiated coverage of Robinhood (HOOD) with an outperform rating and a target price of $30, attributing the bullish call to a “monster” crypto cycle, as stated in a research report released on Thursday.

The report predicts that the total crypto market capitalization will reach $7.5 trillion by 2025, compared to $2.6 trillion today. This projection suggests that Robinhood’s crypto revenue could increase ninefold. Additionally, Robinhood announced on Wednesday that crypto trading volume on its platform rose by 10% in February compared to January.

Bernstein anticipates significant growth in the market capitalization of Bitcoin (BTC), estimating it to reach $3 trillion by 2025, with Ether (ETH) reaching $1.8 trillion, and other leading blockchain tokens collectively reaching $1.4 trillion.

Also, read- Top 10 ways Crypto Market Manipulation Is Damaging To New Investors

Analysts Gautam Chhugani and Mahika Sapra highlighted the unprecedented institutional adoption of cryptocurrencies. They foresee assets under management for spot Bitcoin exchange-traded funds (ETFs) potentially surging to $300 billion by 2025 and anticipate the availability of an Ether ETF within the next 12 months.

Bernstein views Robinhood as a two-year cyclical trade, poised to benefit from the crypto-led earnings growth expected over 2024-25. Following this announcement, Robinhood’s shares surged over 10% in after-hours trading.