Bitcoin

Bitcoin (BTC), the original crypto, reportedly underwent a 16% decline in the last two weeks. However, Coinbase, the largest US cryptocurrency exchange, is grappling with challenges emerging from the <a href="https://news.todayq.com/bitcoin-price-crashes-to-38k-from-48k-in-just-12-days/" target="_blank" rel="noopener noreferrer nofollow">broader market correction</a> and disappointment surrounding the performance of Bitcoin exchange-traded funds (ETFs).&nbsp; Coinbase feeling the heat? 
According to reports, JPMorgan Chase &amp; Co. has downgraded Coinbase Global Inc (NASDAQ: COIN). This comes in response to concerns about a potential slump in Bitcoin price and waning enthusiasm for directly investing in digital tokens through ETFs.&nbsp;
Analysts, led by Kenneth Worthington, showed his disappointment in the catalyst provided by Bitcoin ETFs. He downgraded Coinbase from neutral to underweight. The downgrade resulted in a 5.4% drop in Coinbase’s shares during US premarket trading.
<a href="https://news.todayq.com/cathie-woods-arkk-struggles-as-top-holdings-coinbase-fall-back/" target="_blank" rel="noopener noreferrer nofollow">Coinbase shares</a> are trading at an average price of $123.34, at the press time. Its price has dropped by a big 28% in the last 1 month.
Coinbase, which saw a remarkable gain of nearly 400% in 2023, tracking Bitcoin’s surge, is now facing challenges. Despite the recent approval of spot Bitcoin ETFs by the US financial regulator, concerns are rising about whether crypto-related stocks, including Coinbase, can sustain their previous gains. Coinbase shares have declined by 26% year-to-date, reflecting a shift in sentiment. Bitcoin fails to deliver 
Bitcoin price drop follows hype surrounding the launch of <a href="https://news.todayq.com/how-many-bitcoin-do-spot-etf-issuers-hold-now/" target="_blank" rel="noopener noreferrer nofollow">crypto ETFs</a>. Investors who sought to capitalize on the much-anticipated ETFs have instead faced losses, prompting some to take profits and exit their cryptocurrency holdings. The ETFs, many launched by major players like BlackRock, have underwhelmed in terms of attracting significant inflows. According to crypto investment group CoinShares, the 10 new ETFs collectively pulled in $4.7 billion by Tuesday, falling short of expectations.
JPMorgan’s Worthington anticipates potential deflation in cryptocurrency ETF enthusiasm, leading to lower token prices, reduced trading volume, and diminished ancillary revenue opportunities for companies like Coinbase. The overall sentiment is turning bearish on Coinbase, with 12 sell ratings, eight buys, and eight holds, according to Bloomberg data. CFRA’s recent recommendation to sell underscores growing worries over competition in the sector.
However, Peter Schiff highlighted the impact of Bitcoin ETFs on Coinbase. He noted that the exchange is one of the major losers as speculators shift their focus from trading Bitcoin on the platform to trading the ETFs. Additionally, individuals who initially considered Coinbase shares as a proxy for Bitcoin are now turning to ETFs, contributing to the challenges faced by the exchange amid the current market dynamics.
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Coinbase faces Downgrade from JPMorgan amid Bitcoin price slump

Todayq News

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