Bitcoin aims for new all-time highs, AMC gets an analyst upgrade
By John Shepard
08:28, 6 April 2021
Bitcoin (BTC) is looking for another push to an all-time high above the $60,000 level, which would join the move by Ethereum (ETH) to its own new record above $2,100 last week. Bitcoin got a boost from JP Morgan’s report, which saw a price target of $130,000 based on gold’s valuation.
In stocks, AMC Entertainment (AMC) was higher by 13% after an analyst upgrade on the opening weekend performance of the Godzilla vs Kong feature.
In the meantime, GameStop (GME) suffered after the announcement of a stock sale.
Bitcoin aims for new highs as BofA sees $130,000 potential
BTC is trying to move towards highs above $60,000 after a recent correction, with the coin trading at $58,920 at the time of writing, on April 6, 7.30am GMT.
Investment bank JP Morgan released a report where analysts said the coin could move to $130,000 based on the valuation of gold.
The analysts said: “Considering how big the financial investment into gold is, any such crowding out of gold as an ‘alternative’ currency implies a big upside for bitcoin over the long term.
“Mechanically, the bitcoin price would have to rise to $130,000, to match the total private sector investment in gold,” they clarified.
The bank saw the potential for this move to happen being driven by increased BTC investment by institutions, provided the coin’s notorious past volatility levels continue to fade out.
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AMC gets an analyst upgrade
AMC shares jumped on Monday after B. Riley analyst Eric Wold upgraded the stock, noting an improved balance sheet outlook and a strong opening weekend for Godzilla vs. Kong.
Wold raised his rating from neutral to buy and boosted the price target to $13, adding: “We have remained impressed with management’s ability to weather the pandemic headwinds by both strengthening the balance sheet and negotiating with landlords to improve the cash runway into 2022.”
On the Godzilla vs. Kong performance, the analyst said that with theatres only around 60% open, and with seating limitations in place, the movie still took in almost $50m in domestic revenues.
GameStop, on the other hand, was 2.35% lower on the day after the company announced a plan to sell up to 3.5 million shares at current prices. The company plans to use the net proceeds from the stock sale to “further accelerate its transformation as well as for general corporate purposes and further strengthen its balance sheet”.
This is a predictable move by the company, but the stock has been sold off to meet the typical dynamics of share sales. The company will be in a better financial position going forward after the sale. GME trades at $186.95 after recovering some earlier losses on the day.
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