Bitcoin ETF

Impact

Spot

<p>The post <a href="https://coinpedia.org/news/jpmorgan-downgrades-coinbase-amid-concerns-over-spot-bitcoin-etf-impact/">JPMorgan Sounds Alarm on Bitcoin ETFs: Coinbase Faces 38% Downgrade</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>In a surprising move, <a href="https://coinpedia.org/news/jpmorgans-bold-prediction-ethereum-to-outshine-bitcoin-in-upcoming-year/">JPMorgan Chase &amp; Co.</a> has downgraded Coinbase Global Inc., expressing reservations about the U.S. market’s readiness for the recently approved spot <a href="https://coinpedia.org/news/bitcoin-btc-price-drops-nearly-20-post-etf-launch-should-you-buy-the-dip/">Bitcoin exchange-traded funds (ETFs).</a></p> 
<p>Was the USA really not ready for such a massive financial instrument? Let’s dig in deep to understand this hot new take. </p> 
<h2 class="wp-block-heading" id="h-markets-at-a-crossroads">Markets at a Crossroads</h2> 
<p>JPMorgan, a financial powerhouse, has shifted its stance on <a href="https://coinpedia.org/news/ripples-head-lawyer-exposes-flaws-in-coinbase-vs-sec/">Coinbase</a>, moving from a ‘neutral’ to an ‘underweight’ rating. Despite Coinbase’s impressive profits in the previous year, the bank foresees challenges in 2024, and its lead analyst, Kenneth Worthington, also points to potential headwinds for the popular cryptocurrency exchange.</p> 
<blockquote class="wp-block-quote"> 
 <p><em>“While we continue to see Coinbase as the dominant U.S. exchange in the crypto ecosystem and a leader in cryptocurrency trading and investing globally, we think the catalyst in bitcoin ETFs that pushed the ecosystem out of its winter will disappoint market participants.”&nbsp;</em></p> <cite>Kenneth Worthington</cite>
</blockquote> 
<h2 class="wp-block-heading" id="h-a-bleak-forecast">A Bleak Forecast</h2> 
<p>Keeping an eye on the horizon, JPMorgan maintains a price target of $80 on Coinbase stock, signaling a projected 38% drop over the next 12 months. This downgrade is a notable departure from the bank’s more optimistic coverage initiated in May 2021. Following this development, Coinbase shares experienced a 4.1% dip, settling at $122.90 in pre-market trading.</p> 
<p>Read More: <a href="https://coinpedia.org/news/coinbase-vs-sec-is-dismissal-on-the-cards-heres-what-to-expect/">Coinbase vs. SEC: Is Dismissal on the Cards? Here’s What To Expect</a></p> 
<h2 class="wp-block-heading" id="h-a-threat-to-the-market-at-large">A Threat to the Market at Large?!</h2> 
<p>The Securities and Exchange Commission’s (SEC) approval, initially anticipated to attract mainstream investment, now raises concerns within the bank. JPMorgan fears that any disappointment in ETF fund flows could trigger a decline in overall market sentiment. In a Monday report, Worthington notes the possible consequences: “lower token prices, lower trading volume, and lower ancillary revenue” opportunities for platforms like Coinbase.</p> 
<p><strong>…but others differ</strong></p> 
<p>Despite JPMorgan’s bearish sentiment, investment firm Wedbush takes a more optimistic view. Wedbush’s recent report from January 11 suggests that Coinbase is most likely to benefit from the SEC’s approval of spot Bitcoin ETFs.&nbsp;</p> 
<p>Read More: <a href="https://coinpedia.org/news/weekly-spot-bitcoin-etf-report-insights-after-its-first-trading-week/">Weekly Spot Bitcoin ETF Report: Insights After Its First Trading Week</a></p>

JPMorgan Sounds Alarm on Bitcoin ETFs: Coinbase Faces 38% Downgrade

Table of Contents

CoinPedia News

Other articles published on Jan 24, 2024

Shiba Inu Team Confirms Automated Shib Burn On Puppynet

Top Cryptos To Skyrocket SOON!

Meme Token TRUMP Sent to Donald Trump-Branded Crypto Wallet Now Worth Over $1.1 Million

Revving Up Anticipation: Apple’s Electric Car Release Shifted to 2028 Amidst Self-Driving Setbacks

Blockchain Futurist Conference this August 15-16, 2024 to Showcase the Future of Bitcoin, Web3, a...

$WIF and $BONK Crater 20% as $GFOX Gains Steam

Join our free newsletter for daily crypto updates!