Retrospect on Anthony Pompliano’s Bloomberg TV Appearance
On January 23, Anthony Pompliano, the founder of Pomp Investments, talked about the mispricing of Coinbase and its changing business model.
Coinbase’s Shifted Business Model
Pompliano brought attention to how companies like Coinbase are undervalued in the public markets. Coinbase is moving from exchange and custody services to a Web3 and crypto-native revenue model. Investors should evaluate companies according to their crypto-native revenue percentage, which indicates if they are undervalued. Coinbase is a prime example of this.
Crypto Investments: An Unavoidable Trend
Pompliano stated that Bitcoin is the leader in crypto monetary competition and that cryptocurrencies should be considered as a potential investment. Young investors are pouring capital into this sector, making it an unavoidable trend that has shown significant outperformance.
Bitcoin ETFs and Coinbase
Coinbase plays a crucial role in America’s regulated exchange and acts as a custody provider for many approved spot Bitcoin ETFs. This is beneficial for Wall Street and the industry. Keeping an eye on Coinbase is imperative as it taxes the ETF trend by facilitating access to crypto assets.
JPMorgan Downgrades Coinbase Stock, Citing Bitcoin ETF Catalyst Concern
In a recent research report, JPMorgan expressed concerns regarding the potential disappointment in the crypto market due to spot Bitcoin exchange-traded funds (ETFs). As a result, JPMorgan downgraded Coinbase stock to underweight and maintained a steady price target of $80. This news saw a 4.1% drop in Coinbase’s shares to $122.90 during premarket trading.
Outlook for Coinbase in 2024
Despite Coinbase’s advancements, JPMorgan anticipates a challenging year ahead for the company. They recognize its leading position but warn about market disillusionment due to the spot Bitcoin ETFs in the U.S.
Hot Take
Analyzing Coinbase’s stance is essential for investors following the recent concerns the market has expressed. As the company takes its strides, many eyes will be monitoring any developments influencing the crypto market.
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