Coinbase (COIN) shares are surging on Thursday as JPMorgan analysts upgrade the crypto exchange's stock to Neutral while Bitcoin (BTC-USD) rallies back above $52,000. Yahoo Finance Live examines patterns in cryptocurrency trading as a result of January's spot Bitcoin ETF listings.
For more expert insights and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's Note: This article was written by Luke Carberry Mogan.
Video transcript
BRAD SMITH: Coinbase stock is booming as JPMorgan upgrades the stock to Neutral. The move reflects the rise in prices of Bitcoin and cryptocurrencies in general. Bitcoin price hits $52,000 as it regains its $1 trillion market cap here.
The market cap of the entire cryptocurrency market here is expected to be $2 trillion. I'll come back to it in a moment, but at least that's where I saw it this morning. But as we consider what the catalysts are for not just Coinbase but for Bitcoin as a whole, we continue to talk in detail about what the Bitcoin halving event could mean broadly.
But Ethereum ETF filing could also mean so much more attention and investability for the crypto market cap as a whole. We saw how that impacted Robinhood's earnings this week too. This is perhaps one of the other important catalysts to watch here.
RACHELLE AKUFFO: I found it interesting that SEC Chairman Gary Gensler said that he was really trying to temper expectations around the inclusion of ETF spot futures in the same way that they had seen with spot Bitcoin ETFs . When it comes to Bitcoin, it is actually a case-by-case situation. Didn't seem too confident about spot Ethereum ETFs.
It's a completely different animal. As mentioned, it is both the coin, the token and the blockchain it runs on. So it's a lot more nuanced than just focusing on just looking at it as a token. And we continue to see that Gensler's focus on this is the exception and not necessarily the rule. So something we should keep in mind when comparing Bitcoin and Ethereum's potential.
BRAD SMITH: And just for the context of the Coinbase call that JPMorgan made here to close with this: They said in their opinion, this Bitcoin appreciation is helping to better identify Bitcoin ETF flows, which in turn is driving Bitcoin prices higher and other tokens are also rising. This has to do with the crypto landscape. And again, they cited some of the significant Bitcoin price increases that actually pointed to the US Bitcoin spot ETFs.
However, they noted that the news event was initially a sale, including here and on this call. So ultimately, we'll see exactly how the stock market continues to react to this JPMorgan upgrade from Underweight to Neutral. New price target, here $80 for Coinbase.
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