- The bank downgraded the exchange from neutral to underweight.
- JPMorgan predicts that interest in Bitcoin ETFs will continue to wane.
In a research report released on Monday, JPMorgan downgraded U.S. exchange Coinbase (COIN) to underweight and warned that the debut of spot bitcoin ETFs, the primary driver of bullish sentiment in the cryptocurrency markets last year, might disappoint investors in 2024.
Analysts led by Kenneth Worthington mentioned:
“While we continue to see Coinbase as the dominant U.S. exchange in the crypto ecosystem and a leader in cryptocurrency trading and investing globally, we think the catalyst in bitcoin ETFs that pushed the ecosystem out of its winter will disappoint market participants.”
Tough Year Predicted
With a price objective of $80 remaining constant, the bank downgraded the exchange from neutral to underweight. At the time of writing, Coinbase shares dropped 3.91% to $123.20 as per MarketWatch. Despite the exchange’s accomplishment in many significant efforts, the bank warned that 2024 might be harder after the stock’s 390% surge last year.
Many believed that the recent approval of spot bitcoin ETFs by the U.S SEC would usher in a new age for cryptocurrencies, as large-scale capital would pour into the market. Investors who were previously unable to participate in the digital asset market may do so with the introduction of these products, since they do not need ownership of the underlying assets.
Bitcoin’s price has fallen below $39,000 and JPMorgan predicts that interest in Bitcoin exchange-traded funds (ETFs) will continue to wane, which will have a negative impact on token prices, trading volume, and ancillary revenue potential for companies like Coinbase.
Moreover, a crucial legal battle exists between Coinbase and the United States SEC. The regulatory body claims that Coinbase’s business model includes trading unregistered securities.
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Bitcoin Plunges Below $39K as Selling Pressure Intensifies
Source: https://thenewscrypto.com/jpmorgan-downgrades-coinbase-amid-bitcoins-lackluster-performance/