- JPMorgan Chase analysts have stated that the positive momentum in spot Bitcoin ETFs has reached its limit.
- This development is affecting various market participants, including Coinbase.
- As a result, the bank has downgraded Coinbase’s rating and set a projected price of $80 for the stock.
JPMorgan Chase has downgraded Coinbase from a Neutral to Underperform rating, citing the fading positive momentum from spot Bitcoin ETF approvals. This information was reported by CoinDesk, referring to the organization’s report.
According to TradingView, the stock exchange opened in the United States on January 23, 2024, at a price of $122.53. Since the beginning of the month, this position has dropped by over 24%:
COIN/USD Price. Source: TradingViewAccording to JPMorgan Chase’s forecast, the estimated value of these shares is $80. Bank analysts primarily attribute this to the overall decline in the crypto-asset market.
“While we continue to see Coinbase as the dominant exchange in the cryptocurrency ecosystem, we believe that the main catalyst that propelled the sector out of the crypto winter in the form of spot Bitcoin ETFs will fall short in 2024,” stated the report.
The bank highlighted concerns that any disappointment in crypto funds could hinder the rally in the digital asset market. It should be noted that JPMorgan Chase had previously predicted a further correction in Bitcoin.
On January 23, the asset dropped below $39,000 and is currently attempting to stabilize at this level. Continued pressure on Bitcoin will result in reduced revenues and financial losses for companies like Coinbase.
Additionally, the impact of spot Bitcoin ETFs directly affects the exchange because Coinbase serves as a custodian for most of these funds.
Coinbase has been mentioned in several 2024 forecasts by experts as the unofficial leader in the industry and the most promising project. Ryan Selkis, the CEO of Messari, particularly expressed this viewpoint.