Key Takeaways

• Shares of SanDisk tumbled 9.44% during Tuesday’s session even as Bank of America issued an optimistic price target increase
• Bank of America elevated its SNDK price objective from $2,100 to $2,500 while reiterating its Buy recommendation
• BofA’s Wamsi Mohan anticipates average selling prices could surge as much as 35%, while bit growth may increase 13% sequentially
• The memory maker has soared 800% in 2024 and an eye-popping 4,755% over the trailing year, reaching a $323 billion market capitalization
• Valuation concerns include a forward price-to-earnings ratio of 33 — exceeding both Nvidia and Micron — alongside troubling technical indicators

SanDisk shares experienced a steep decline on Tuesday, surrendering 9.44% of their value during the trading session. The selloff occurred paradoxically on the very day that Bank of America Securities announced an upward revision to its price target, moving from $2,100 to $2,500.

Sandisk Corporation, SNDK

Bank of America’s equity analyst Wamsi Mohan maintained his Buy recommendation on the shares. His optimistic thesis centers on the persistent mismatch between NAND flash memory supply and demand, a condition he anticipates will persist through 2027.

Mohan’s research indicates SanDisk’s average selling prices could experience gains of up to 35%. Additionally, he projects bit growth — representing the total volume of memory units delivered — will expand by 13% on a sequential quarter basis.

Using these assumptions as a foundation, Bank of America now forecasts that SanDisk will report $9.1 billion in revenue for the June quarter alongside earnings per share of $37.01. These projections exceed the Street’s current consensus estimates of $8.35 billion in revenue and $34.26 in EPS.

For the subsequent quarter, BofA’s model anticipates revenue reaching $11.5 billion with EPS climbing to $48.55.

Multi-Year NAND Supply Deals Enhance Earnings Predictability

A critical element supporting Mohan’s optimistic outlook involves SanDisk’s strategic emphasis on securing long-term NAND supply agreements, referred to as NBMs. These multi-year commitments guarantee future revenue streams and provide greater clarity for investors modeling future profitability.

Bank of America anticipates widespread adoption of these contractual arrangements among cloud infrastructure providers and enterprise clients. The investment bank also highlighted that these agreements are designed to preserve gross margin levels within SanDisk’s established target parameters.

This strategic pivot has contributed significantly to SanDisk’s extraordinary market performance. The stock has skyrocketed 800% since the beginning of the year and an astonishing 4,755% over the past twelve months. This explosive growth has transformed what began as a Western Digital spinoff into a company valued at $323 billion.

The bullish sentiment extends beyond Bank of America. Mizuho Securities increased its target from $1,825 to $2,200. Cantor Fitzgerald established an even higher objective at $2,900. Susquehanna Financial Group represents the most aggressive bull case with a $3,250 price target.

The analyst community’s consensus rating stands at Strong Buy — featuring 14 Buy ratings, two Hold ratings, and zero Sell recommendations over the most recent three-month period. The mean price target across all analysts sits at $1,979.38, suggesting approximately 3% downside from present trading levels.

Growing Concerns About Valuation and Market Dynamics

Notwithstanding the widespread analyst enthusiasm, multiple risk factors deserve consideration — and Tuesday’s sharp decline serves as a cautionary reminder.

SanDisk’s forward price-to-earnings multiple has expanded to 33 times, surpassing Nvidia at 22 times and Micron Technology at 18 times. This valuation premium has begun attracting scrutiny from market participants.

Supply-side dynamics present another concern. Elevated memory pricing could incentivize rival manufacturers including Micron, Kingston Technology, and Kioxia Holdings to accelerate production capacity, which would ultimately exert downward pressure on pricing.

From a technical analysis perspective, the weekly chart reveals a bearish divergence in the Relative Strength Index. The RSI has been declining even as the stock price has continued advancing — a formation that frequently precedes price corrections.

The equity currently trades at $2,238, substantially above its 50-day moving average of $1,458.

Bitcoin has climbed back above $60,000 after Federal Reserve Chair Kevin Warsh declined to signal the direction of future interest rate decisions during an ECB policy discussion.

According to data from crypto.news, Bitcoin (BTC) traded around $60,175 at the time of writing after rebounding about 3% from an intraday low below the key $58,000 level. The move followed comments from Warsh, who again avoided offering forward guidance on monetary policy while reiterating that future decisions will depend on incoming economic data.

Bitcoin rebounds as Warsh avoids policy signals

Speaking during an ECB Forum panel, Warsh declined to say whether the Federal Reserve would raise interest rates at the July Federal Open Market Committee meeting. Instead, he repeated the position he adopted after taking office that the central bank would not pre-commit to future policy moves and would continue responding to economic data as it becomes available.

His remarks came as traders largely continued to expect no change in interest rates later this month. According to CME FedWatch data, markets currently assign a 70.6% probability that the Federal Reserve will leave rates unchanged at the July FOMC meeting.

Warsh also addressed inflation, saying expectations had declined during the first four weeks of the recent period despite concerns tied to the U.S.-Iran conflict. He added that inflation risks had eased while reaffirming the Federal Reserve’s commitment to returning inflation to its 2% target.

As crypto.news reported after the June FOMC meeting, Warsh also left rates unchanged at that gathering. Bitcoin fell to around $65,430 following the decision, while Ethereum traded near $1,770. The Federal Reserve’s updated projections at the time showed that nine policymakers expected at least one rate increase before the end of the year.

Those projections have continued to shape market expectations even after Warsh reiterated at the ECB Forum that future policy decisions would depend on incoming economic data.

Rate hike expectations continue to pressure crypto

Although traders see little chance of a July rate increase, expectations for additional tightening later this year have not disappeared. According to Polymarket data, there is currently a 54% probability that the Federal Reserve will raise interest rates before the end of 2026.

Higher borrowing costs have generally remained a headwind for cryptocurrencies because elevated interest rates tend to support demand for cash and short-term fixed-income assets over riskier investments such as Bitcoin.

Separate reporting by crypto.news also noted that Morgan Stanley expects the Federal Reserve to keep rates unchanged through the rest of the year. The bank nevertheless warned that rate hikes could return if inflation remains persistent or if the unemployment rate falls further.

Outside monetary policy, another source of uncertainty for Bitcoin has come from corporate supply. As previously reported by crypto.news, the possibility that Strategy could sell as much as $1.25 billion worth of Bitcoin has remained one factor contributing to selling pressure in the market.

Political attention has also stayed on Federal Reserve policy. Before Warsh became chair, President Donald Trump repeatedly called for lower interest rates. After the June decision to keep rates unchanged, however, Trump responded without strong criticism and continued to praise the new Fed chair while receiving no timeline for future rate cuts.

The downgrade marks a sharp reversal from Citi’s previous outlook, which assumed passage of U.S. digital asset market structure legislation would spur adoption among financial advisors and traditional investors. The bank now believes that timeline has slipped, leaving the market without a meaningful catalyst.

Saunders said ETF flows continue to be the main force behind crypto prices, with recent demand turning negative as investors pulled back from risk.

According to the bank’s analyst, sentiment has also been hurt by concerns that digital asset treasury (DAT) companies could become net sellers of bitcoin. Recent corporate actions by Strategy amplified those fears despite involving relatively modest BTC sales.

The report noted that bitcoin and ether both remain below key technical levels, including their 200-day moving averages, while speculative capital has shifted toward AI-related investments.

The bank’s revised forecasts assume flat ETF flows in its base case. In its bull case, stronger retail and institutional adoption lifts bitcoin to $108,000 and ether to $2,932. Its bear case, based on recessionary macro conditions and continued ETF outflows, sees BTC falling to $53,000 and ETH to $1,094.

While the bank’s equity strategists have become more constructive on U.S. stocks, providing some support through crypto’s equity correlation, the report said that positive macro factors are insufficient to offset weakening flows.

A new independent non-profit, Ethereum Institutional, has launched with the goal of accelerating institutional adoption of Ethereum, its layer-2 networks and the broader ecosystem.

The organization is led by David Walsh, Marius Smith and Matthew Dawson. Walsh previously led the Ethereum Foundation’s enterprise efforts, while the organization said its leadership brings experience spanning institutional engagement, capital markets and Ethereum ecosystem development. It said its mission is to provide institutions with a neutral, independent point of contact as they evaluate Ethereum for tokenization, stablecoins and other onchain financial infrastructure.

In announcing the initiative on X, Ethereum Institutional said institutions need “a credible, independent front door” to the Ethereum ecosystem. While Ethereum’s neutrality is one of its defining strengths, the group argued, that neutrality has often left enterprises without a clear organization to engage as they make long-term infrastructure decisions.

The launch comes as the Ethereum Foundation continues to narrow its role to stewarding the core protocol, with ecosystem participants increasingly spinning up independent organizations focused on specific areas such as business development, institutional outreach and developer support. The shift follows broader changes at the foundation, including leadership restructuring and longstanding community calls for greater transparency.

Investment bank Standard Chartered has initiated coverage of Morpho, calling the lending protocol a dual-play on decentralized finance (DeFi) that combines a lending market with infrastructure for onchain banks and asset managers.

The bank has a $60 price target for MORPHO by the end of 2030, implying roughly 33x upside from its current price. This would see the token outperform both bitcoin BTC$59,990.05 and ether (ETH) over the same period.

MORPHO was more than 13% higher over 24 hours, trading around $2.13 at publication time.

“Given its status as one of the largest DeFi lending protocols and its comfortable financial position (it just raised $175 million in VC funding), we think Morpho can scale to meet the expanding base of assets deployed in DeFi,” wrote Geoff Kendrick, head of digital assets research at Standard Chartered, in the Wednesday report.

Decentralized finance has rebounded sharply over the past year as institutional interest in tokenized real-world assets and onchain lending accelerated. Lending protocols have benefited from rising stablecoin adoption and renewed demand for crypto credit, while infrastructure providers that enable asset managers and financial institutions to deploy capital onchain have emerged as one of the sector’s fastest-growing segments.

The European Union has completed its MiCA transition, leaving Tether’s $186 billion USDT without a compliant route onto regulated crypto exchanges across the bloc from July 1, 2026.

According to the European Union’s Markets in Crypto-Assets (MiCA) framework, the transition period has now ended, requiring regulated crypto platforms to support only compliant stablecoins.

As a result, MiCA-licensed exchanges including Coinbase, Kraken, and Crypto.com have removed USDT trading for European users, ending the stablecoin’s presence on regulated order books despite its position as the world’s largest stablecoin by market capitalization.

Tether rejected MiCA authorization over reserve requirements

Rather than applying for authorization as an electronic money token (EMT), Tether decided not to pursue MiCA approval. CEO Paolo Ardoino previously argued that the regulation’s reserve rules create systemic risk because issuers must keep at least 60% of reserves in European bank deposits.

Tether’s reserve strategy instead relies heavily on U.S. Treasury securities and other globally diversified assets, making the MiCA framework incompatible with its existing model.

The company’s withdrawal from the European market had been unfolding well before the final deadline. Tether discontinued its euro-pegged EURT stablecoin in 2024, while exchange support for USDT gradually disappeared over the following months.

Coinbase Europe delisted the token in December 2024, Crypto.com followed in January 2025, Binance restricted European USDT trading pairs in March 2025, and Kraken first moved users to a sell-only model before later ending support entirely.

Data on MiCA adoption also illustrates how selective the licensing process has been. Before the July 1 deadline, only 244 MiCA licenses had been issued across the European Union, while several crypto companies opted to expand operations from jurisdictions such as Dubai instead of seeking authorization under the bloc’s new framework.

USDC strengthens its position while Tether keeps European partnerships

As Tether stepped away from the licensing process, Circle took the opposite approach by securing an Electronic Money Institution (EMI) license in France. The authorization can be passported across all 27 European Union member states, allowing both USDC and EURC to operate under MiCA. Their compliant status has made them the primary dollar- and euro-backed stablecoins available on licensed European trading platforms.

The transition has also forced liquidity providers to adjust. According to the report, market makers that previously quoted USDT pairs have begun rebuilding liquidity around USDC because regulated exchanges can no longer offer USDT trading within the European Union.

Even so, Tether has not completely exited the region’s digital asset ecosystem. Companies including StablR and Oobit have launched MiCA-compliant stablecoins, EURR and USDR, using Tether’s Hadron tokenization platform, allowing the company to maintain technology partnerships without issuing a MiCA-approved stablecoin itself.

Elsewhere in Europe, 37 banks including BNP Paribas and ING are developing a common euro stablecoin known as Qivalis, according to the report. The project seeks to provide a regulated euro-denominated alternative as financial institutions increase their participation in the digital asset market.

Recent exchange data also points to changing user behavior beyond Europe. As previously reported by crypto.news, Bybit and OKX disclosed higher user Bitcoin holdings in their latest Proof of Reserves reports, while USDT balances declined on both platforms, suggesting some users are holding less stablecoin liquidity.

In a separate crypto.news report, India’s USDT premium climbed above 8.5% after enforcement action against crypto remittance firms disrupted domestic supplies of the stablecoin, highlighting how regional regulations continue to reshape USDT markets in different ways.

Key Highlights

• Security Matters shares advanced 6.90% following increased interest in its verification technology.

• The company’s digital passport system connects plastic materials with authenticated documentation.

• Stricter U.S. recycling regulations are driving demand for robust verification infrastructure.

• Security Matters focuses on supply-chain transparency, regulatory compliance, and material authentication.

• Authenticated recycled plastics could achieve competitive parity with virgin materials.

Security Matters (SMX) stock advanced 6.90% to reach $14.33 following the opening bell, driven by heightened interest in its recycling authentication technology. The stock experienced early gains, softened briefly, then held steady near peak levels. This movement came as investors focused on the company’s material verification platform and evolving U.S. recycling regulations.

SMX (Security Matters) Public Limited Company, SMX

Security Matters Advances Recycling Authentication Technology

SMX has centered its business model on verification-driven recycling rather than general environmental messaging. The company’s Digital Material Passport Platform creates connections between physical plastics and protected digital documentation. Consequently, plastic materials can carry information about source, composition, handling history, lifecycle phase, and regulatory alignment.

The firm employs molecular tagging to establish permanent material identification. This methodology enables brands, producers, and oversight bodies to authenticate recycled plastic throughout every phase. Recycled components can progress through distribution networks supported by enhanced documentation and transparent oversight.

Growing media coverage has elevated Security Matters’ visibility within the recycling technology sector. Numerous prominent publications featured its contributions to plastic authentication and data-driven environmental solutions. The organization’s primary emphasis continues to center on regulatory alignment, supply-chain transparency, and quantifiable recycling results.

Tightening U.S. Regulations Drive Verification System Adoption

The American recycling sector has transitioned toward more rigorous verification requirements. Individual states persistently broaden regulations covering recycled content mandates, collection programs, and producer responsibility frameworks. Consequently, organizations require more definitive documentation when reporting or substantiating environmental commitments.

Corporations encounter intensified oversight as regulatory authorities examine sustainability assertions more thoroughly. Producers require validated information before establishing pricing, purchasing, funding, or disclosing recycled material usage. Municipal governments demand stronger confirmation that collected plastics return to beneficial applications.

SMX addresses this requirement through authentication systems, passport documentation, and compliance-oriented analytics. The platform facilitates recycled-content validation, custody chain records, origin tracking, and lifecycle reporting. Collectively, these capabilities transform scattered recycling assertions into organized datasets.

Security Matters Connects Material Documentation With Market Value

Security Matters’ operational reach extends nationally and touches multiple recycling system components. The organization integrates physical marking, digital documentation, compliance analytics, and marketplace functionality. Accordingly, the platform can facilitate sourcing, capital access, plastic credit systems, and brand authentication.

The firm additionally advances its Plastic Cycle Token and recycled plastic registry framework. These instruments seek to align validated recycling operations with quantifiable financial value. Subsequently, certified materials can compete more effectively against virgin feedstock.

SMX has articulated this transformation through its Age of Parity initiative. The initiative contends that authenticated recycled plastic can emerge as a viable economic alternative. As supply constraints and regulatory pressure intensify, Security Matters presents its verification platform as essential recycling infrastructure.

“Large groups of large companies coordinate poorly, have misaligned incentives, slow things down and rarely create the space for real durable innovation,” he wrote.

Test for the consortium model

That skepticism is shared by Lorenzo Valente, director of digital asset research at ARK Invest, who noted that crypto has seen several consortium-backed stablecoin initiatives over the years, including Meta’s Diem project and Paxos-led Global Dollar Network.

“Every year we get our consortium-style initiative around a stablecoin,” Valente wrote in an X post. “While the set of players here is obviously potent, I remain highly skeptical any of these initiatives can hit scale.”

He said Open Standard’s biggest challenge may be coordinating more than 140 participants with competing interests.

“A consortium of hundreds of rivals has no precedent for working,” he said. “The pace of decision-making across competitors is going to be glacial.”

Valente likened the model to decentralized autonomous organizations, or DAOs, whose governance structures often struggled to make timely decisions.

“‘Owned by everyone’ almost always means accountable to no one,” he said. “I’d bet on the two operators who can ship unilaterally over a committee that has to ask hundreds of rivals for permission.”

He also questioned whether large banks, payment networks and technology companies would remain committed if the project encounters regulatory pressure. Circle and Tether, he noted, have spent years building global regulatory infrastructure and licensing, while a consortium could find it harder to stay aligned if conditions become more challenging.

Coinmetro, an Estonian-based cryptocurrency exchange, has claimed that it has filed “a reorganisation application to the Estonian court.”

In its announcement, it states that this is required because of “an extraordinary situation caused by a failure of one of our financial service providers.”

It further claims that it had already suspended user registrations, deposits, and withdrawals back on June 22.

Interestingly, in the Estonian register both Coinmetro OÜ and Coinmetro Group OÜ are past due on annual reports. Coinmetro Group OÜ is also listed as having a tax debt.

The announcement didn’t disclose which financial service partner led to this failure, and Coinmetro has yet to respond to Protos’ questions regarding that issue.

During a YouTube based “Ask Me Anything” with Coinmetro Chief Executive (and beneficial owner) Kevin Murcko, he claimed that it was actually more than one provider that failed, despite the announcement only claiming one.

He also claimed that there was a multi-year internal investigation, suggesting that this failure happened well before this current announcement.

Additionally, he stated that he originally believed that Coinmetro’s balance sheet was strong enough that this wasn’t originally material, but has become material as Coinmetro has approached the July 1 licensure deadline for compliance with Markets in Crypto Assets regulations.

Prime Trust

The Prime Trust bankruptcy estate (PCT Litigation Trust) filed an adversary proceeding against Coinmetro in August of last year.

This proceeding attempted to clawback withdrawals made in the days immediately preceding bankruptcy.

This proceeding claims that Prime transferred $1,205,751.10 to Coinmetro in the days before Prime’s failure.

Read more: Prime Trust accused of using customer funds to cover lost deposits

The mistakes and fraud committed by Prime apparently make it extraordinarily difficult to determine who was owed which funds from Prime Trust.

This means that Coinmetro didn’t necessarily withdraw more funds than it deposited because of the failure, and Prime Trust is trying to clawback many of the withdrawals from the final days.

Protos reached out to Coinmetro for comment, but it didn’t respond before publication.

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