The investment bank had previously categorized Coinbase stock as a “neutral” rating but maintained its price target of $80 by December 2024.
Analysts for JPMorgan downgraded cryptocurrency exchange Coinbase’s stock to an “underweight” rating, citing the falling price of Bitcoin (BTC) and listing shares of spot BTC exchange-traded funds.
In a Jan. 22 note to investors, JPMorgan analysts suggested the price of Coinbase stock under the ticker COIN would not perform well. Data from Nasdaq showed the COIN price had fallen more than 29% in the last 30 days, reaching $121.65 at the time of publication.
“While we continue to see Coinbase as the dominant U.S. exchange in the cryptoecosystem and a leader in cryptocurrency trading and investing globally, we think the catalyst in Bitcoin ETFs that has pushed the ecosystem out of its winter will disappoint market participants,” said JPMorgan. “Cryptocurrency prices are already under pressure; with Bitcoin falling below $40k as of the writing of this note, we see greater potential for cryptocurrency ETF enthusiasm to further deflate, driving with it lower token prices, lower trading volume, and lower ancillary revenue opportunities for firms like Coinbase.”
