Bitcoin ETF

Bitcoin

<img width="1200" height="800" src="https://coingape.com/wp-content/uploads/2024/01/ITUMB357O5G6JKHJTLH5RTEVVQ-1-e1705545963181.jpg" class="attachment-full size-full wp-post-image" alt="Coinbase" decoding="async" style="float:right; margin:0 0 10px 10px;">
In a surprising turn of events, Coinbase’s rating was downgraded by JP Morgan on Tuesday. Concerns over the fading hype of Bitcoin ETFs have made analyst sentiment bleak, making them warn about Coinbase’s outlook. The rating downgrade also comes at a time when crypto markets have been rangebound 
<h2 id="jp-morgan-downgrades-coinbase-s-rating">JP Morgan downgrades Coinbase’s rating</h2> 
American multinational financial firm JP Morgan on Tuesday downgraded Coinbase’s rating. The largest crypto exchange saw its rating go to “underweight” from a previous rating of “neutral”. This rating cut by analysts is the first for Coinbase and not a good sign. 
Shares of the company <a href="https://coingape.com/markets/coinbase-coin-stock-price-prediction-today-january-22/?utm_source=priceanalysisbar" target="_blank" rel="noopener">fell</a> nearly 4% after the rating cut was announced. 
<h2 id="fading-bitcoin-etf-hype-hurts-coinbase-s-outlook">Fading Bitcoin ETF hype hurts Coinbase’s outlook</h2> 
According to Bloomberg <a rel="nofollow" href="https://www.bloomberg.com/news/articles/2024-01-23/waning-bitcoin-etf-hype-set-to-drag-on-coinbase-coin-jpmorgan-says?utm_medium=social&amp;utm_campaign=socialflow-organic&amp;utm_source=twitter&amp;utm_content=crypto" target="_blank">reports</a>, JP Morgan in a statement released on Monday expressed concerns over Coinbase’s stock coming under pressure this year as Bitcoin’s rally fades. A led by Kenneth Worthington added in the report that the catalyst in Bitcoin ETFs that has pushed the ecosystem out of its winter will disappoint market participants in the future. This is what eventually led to the rating cut as well. 
However, Coinbase had a record-breaking year in 2023 as its stock increased in value by almost 400%. While the rebound from exceptionally low valuations contributed to some of the gains, the cryptocurrency market’s resurgence was a major factor. But the stock has fallen drastically year to date fulling concerns over the fact that it might crash in the upcoming year. 
Adding fuel to the company’s bleak outlook, Coinbase has reported a loss attributable to $2.3 million for the third quarter of 2023. Though the losses had narrowed as compared to the third quarter of 2022, they still failed to convince analysts and investors. Coinbase’s upcoming full-year results will be very crucial to analyze the trajectory of the company and also the cryptocurrencies related to it. 
<h2 id="will-this-affect-other-cryptocurrencies">Will this affect other cryptocurrencies?</h2> 
Coinbase’s rating downgrade comes at a time when crypto markets are already rangebound and trying to pace up. Although the hype of Bitcoin ETFs saw the market ascend a little the hype quickly faded. The aftermath of the ETF approval saw Bitcoin prices fall as low as $32,000 in the next week. 
There are presently 591 markets (cryptocurrency trading pairings) on Coinbase, along with 248 cryptocurrencies and 3 fiat currencies. BTC/USD is the most traded pair on Coinbase. 
JP Morgan’s reason for the rating cut only mentions Bitcoin. However, it does not take into consideration the trading and prospects of other currencies. The upcoming Bitcoin Halving, Ethereum ETH approval, and Coinbase’s full-year earnings results could be catalysts that could result in other currencies firming their grounds. 
For now, the effect of this rating downgrade might not be severe for other cryptocurrencies apart from Bitcoin, but will likely result in denting market sentiments which are already struggling to find a direction. 
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The post <a href="https://coingape.com/coinbases-rating-downgrade-will-it-affect-the-price-of-other-cryptocurrencies/">Coinbase Rating Downgrade: Will it Affect The Price of Other Cryptocurrencies?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Coinbase Rating Downgrade: Will it Affect The Price of Other Cryptocurrencies?

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