Coinbase Stock Rating Downgraded by JPMorgan
Coinbase Global, the largest cryptocurrency exchange in the United States, is facing a potential setback as JPMorgan Chase & Co. downgrades its stock rating. The downgrade is due to concerns over a decline in Bitcoin’s value and fading enthusiasm for Bitcoin ETFs.
Bitcoin ETF Concerns Lead to Downgrade
JPMorgan analysts, led by Kenneth Worthington, believe that the anticipated catalyst from Bitcoin ETFs will not meet market expectations. Despite acknowledging Coinbase as a dominant player in the crypto industry, JPMorgan downgraded its rating from neutral to underweight.
The news of the downgrade caused Coinbase’s shares to drop by 5.4% during US premarket trading on Tuesday.
JPMorgan Maintains $80 Price Target
Despite the downgrade, JPMorgan maintains a price target of $80 for Coinbase’s stock, implying a 38% decline over the next 12 months. Bloomberg data shows an increase in bearish sentiment towards Coinbase, with 12 sell ratings, eight buys, and eight holds.
Battle of Bitcoin ETFs
In the Bitcoin ETF space, Grayscale’s GBTC ETF experienced outflows of over $640 million, while BlackRock’s IBIT ETF had an inflow of $272 million. This ongoing battle between different Bitcoin ETFs has led to mixed performance in the industry.
Despite challenges, the rolling net flows for Bitcoin ETFs remain healthy, with a positive overall flow of $1 billion. The Nine, a group of other ETFs, now hold a 20% share compared to GBTC.
Hot Take: Coinbase Faces Setback Amidst Bitcoin ETF Concerns
Coinbase, the largest cryptocurrency exchange in the US, is dealing with a potential setback as JPMorgan downgrades its stock rating. This downgrade comes as concerns grow over a decline in Bitcoin’s value and fading enthusiasm for Bitcoin ETFs. While Coinbase remains a dominant player in the crypto industry, JPMorgan analysts believe that the anticipated catalyst from Bitcoin ETFs will not meet market expectations. The news of the downgrade caused Coinbase’s shares to drop significantly. Despite this setback, JPMorgan maintains a price target of $80 for Coinbase’s stock. The battle between different Bitcoin ETFs continues, with mixed performance and varying inflows and outflows. Overall, Coinbase faces challenges amidst ongoing concerns about Bitcoin ETFs.
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