Crypto News – The anticipation of the impending introduction of spot bitcoin ETFs contributed to a notable rise in the value of Coinbase Global Inc.’s shares last year.
Coinbase Downgraded as Bitcoin Price Falls
Analyst Kenneth Worthington of JPMorgan is nevertheless worried that this optimistic outlook could suddenly turn pessimistic. Indeed, there have been speculative claims that the newly announced ETFs’ potential for large returns in the cryptocurrency space is a dream come true.
COIN was formerly rated as “neutral” by JPMorgan, but the company projected a price objective of $80 by December 2024. The investment bank speculates that the industry may be significantly impacted by the listing of several spot Bitcoin ETFs, which might cause an overvaluation and damage stock prices.
Worthington Draws Attention to the Low Bitcoin Price
JPMorgan analysts reduced Coinbase’s stock from a “neutral” to an “underweight” rating, noting the emergence of spot Bitcoin ETFs and the falling price of Bitcoin. According to Worthington, market players will probably be disappointed by the expected impact of spot Bitcoin ETFs, which were seen as a catalyst for revitalizing the Bitcoin ecosystem.
He lowered Coinbase’s shares (COIN) from neutral to underweight in the most recent evaluation, citing his concern that interest in cryptocurrency ETFs may continue to wane. Thus, platforms such as Coinbase may see a decline in auxiliary revenue prospects, a drop in trading volume, and a decrease in token pricing.