8 months ago
Warning of a hard clip up for the crypto market, planetary concern slope JPMorgan has downgraded Coinbase stock. Emphasizing that crypto prices are already nether pressure, JPMorgan warned of “greater imaginable for cryptocurrency ETF enthusiasm to further deflate,” driving with it little crypto prices and trading volume.
JPMorgan’s Crypto Market Outlook, Coinbase’s Downgrade
Global concern slope JPMorgan downgraded Coinbase Global (Nasdaq: COIN) from Neutral to Underweight connected Monday with a terms people of $80. At the clip of writing, Coinbase is trading astatine $123.43, down 28% implicit the past month. JPMorgan expert Kenneth Worthington explained successful a enactment Monday:
While we proceed to spot Coinbase arsenic the ascendant U.S. speech successful the crypto ecosystem and a person successful cryptocurrency trading and investing globally, we deliberation the catalyst successful bitcoin ETFs that has pushed the ecosystem retired of its wintertime volition disappoint marketplace participants.
“We worth the banal connected a normalized net powerfulness astatine $80/share, suggesting [a] downside of 35% successful its shares,” Worthington noted. While helium acknowledged continued advancement successful initiatives similar Coinbase’s derivatives level and L2 network, Base, helium sees the menace posed by a declining crypto marketplace headdress since the U.S. Securities and Exchange Commission (SEC) approved spot bitcoin exchange-traded funds (ETFs) connected Jan. 10.
The expert continued to explicate that portion it has been astir 1 week since the motorboat of spot bitcoin ETFs, the archetypal nett inflow into these funds “seems to beryllium acold little than the cryptocurrency assemblage was touting successful the fiscal media, and little than what we witnessed successful the archetypal week of flows into the Gold ETF erstwhile it launched successful 2004.” He added: “We deliberation overmuch of the crypto-industry acceptable a precocious barroom for the ETF launches, and, portion meaningful, we deliberation expectations are simply excessively precocious and unrealistic.”
The JPMorgan expert further detailed:
Cryptocurrency prices are already nether unit … We spot greater imaginable for cryptocurrency ETF enthusiasm to further deflate, driving with it little token prices, little trading volume, and little ancillary gross opportunities for firms similar Coinbase.
Last week, different JPMorgan expert warned of an incoming bitcoin selloff with an anticipated $3 cardinal Grayscale outflow. Grayscale converted its bitcoin spot (GBTC) into a spot ETF erstwhile the SEC approved spot bitcoin ETFs connected Jan. 10. However, the conversion has been followed by monolithic outflows for Grayscale. Meanwhile, respective recently launched spot bitcoin ETFs, peculiarly Blackrock’s Ishares Bitcoin Trust (IBIT), person seen beardown inflows.
What bash you deliberation astir JPMorgan’s presumption connected the crypto market, spot bitcoin ETFs, and Coinbase? Let america cognize successful the comments conception below.
English (US) 