Coinbase price falls after JPMorgan downgrades its holdings for its Bitcoin ETF.

Coinbase (coin) Price fell 4.1% to $122.90 during pre-market trading after JPMorgan downgraded the cryptocurrency exchange to underweight in a research report on Monday. This refers to the potential disappointment among investors following the launch of a spot Bitcoin ETF (Exchange Traded Fund) in the United States.

“While we view Coinbase as the dominant US exchange in the cryptocurrency ecosystem and a leader in cryptocurrency trading and investing globally, the catalyst for the Bitcoin ETF is: back After winter, the ecosystem will disappoint market participants,” wrote analysts led by Kenneth Worthington.

Coinbase is sharing stocks amid waning Bitcoin ETF interest.

Many investors expected that the U.S. Securities and Exchange Commission’s (SEC) approval of a spot Bitcoin ETF would usher the cryptocurrency market into a new bullish era. These tools will allow institutional money to flow into the digital asset space, allowing investors previously barred from owning digital assets to gain exposure to major cryptocurrencies without owning the underlying assets directly.

JP Morgan downgraded Coinbase to an underweight rating and stated its fair assessment of Coinbase. $COIN That’s $80 per share. This is a drop of more than 35% from current levels. pic.twitter.com/eIqAW3XIme

— Bar Chart (@Barchart) January 23, 2024

While the introduction of mainstream funding could lead to a significant rise in cryptocurrency prices, JPMorgan warned that “disappointment with ETF fund flows could dampen the enthusiasm that has driven the cryptocurrency rally.” The Wall Street giant also pointed out that Bitcoin price is currently under pressure, having already fallen below $40,000.

He added that there is a possibility that the cryptocurrency ETF craze will further decline. If this happens, the bank predicts that it will lower token prices and reduce trading volumes, resulting in “lower ancillary revenue opportunities” for companies such as: coinbase.

As a result, the bank believes that 2024 could be a difficult year for cryptocurrency exchanges despite progress on several important initiatives, and has maintained its price target for COIN at $80 for the next 12 months, projecting a 35% decline. COIN is already down about 21% so far this year.

The report also said: coinbase Once approved in the U.S., it is expected to assume a custodian, monitoring and trading role for the spot Ether ETF.

Related articles:

A new cryptocurrency mining platform – Bitcoin Minetrix

• Thanks to Coinsult
• Decentralized, secure cloud mining
• Get free Bitcoin every day
• Native token currently in pre-sale – BTCMTX
• Staking Rewards – APY 100% or more