JP Morgan Downgrades Coinbase Stock
23 Jan, 2024 ● Crypto News
JPMorgan analysts downgraded Coinbase's stock to "underweight," citing the decline in Bitcoin's value and the influence of spot BTC ETFs.
They expressed skepticism about the stock's future performance, noting a significant price drop in the past month.
JPMorgan acknowledged Coinbase's strong position in the market but predicted disappointing outcomes from the Bitcoin ETFs, which might lead to lower prices and reduced trading volumes.
The investment bank had previously given a neutral rating to Coinbase but lowered its price target for December 2024.
The approval of multiple spot BTC ETFs by the U.S. Securities and Exchange Commission (SEC) on January 10 led to significant market fluctuations.
JPMorgan believes that the high expectations set for these ETFs are unrealistic.
Bitcoin's value has decreased by over 20% since reaching a high of more than $49,000 on January 11.
Bloomberg's ETF analyst James Seyffart noted that spot BTC ETFs experienced significant outflows in their first week of trading.
Sources:
https://cointelegraph.com/news/jpmorgan-downgrades-coinbase-stock-underweight
