According to JPMorgan, Coinbase faces headwinds as interest in Bitcoin and ETFs declines
Coinbase could face challenges due to declining Bitcoin values and declining interest in Bitcoin ETFs, according to findings from JPMorgan Chase & Co.
Shares of Coinbase plunged 6.2% on Tuesday as the downturn followed JPMorgan's decision to issue its first negative review, equivalent to a “sell” rating, on the company since it began tracking in May 2021 the share began.
Despite a significant increase of almost 400% by the end of 2023, Coinbase shares mirrored the performance of Bitcoin, which saw a notable increase over the same period. In 2024, shares of Coinbase are down 30%, while Bitcoin's value is down about 8% and was last trading below $40,000.
Coinbase Global Stock Price | Source: Yahoo Finance
Analysts at JPMorgan expect enthusiasm for cryptocurrency ETFs to continue to decline. This could lead to lower token prices, lower trading volumes, and fewer secondary revenue opportunities for companies like Coinbase. Analysts also believe that the ETF hype that drove Bitcoin out of the crypto winter will ultimately fail to live up to bull market expectations.
The outlook for Coinbase is becoming increasingly cautious: According to a compilation by Bloomberg, the stock receives twelve sell ratings, eight buy ratings and eight hold ratings. Last week, CFRA downgraded its rating to “sell,” citing concerns about increasing market competition.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.