JPMorgan Reverses Stance on Crypto Exchange Coinbase Amid Bitcoin Surge
As Bitcoin breaches the $51,000 mark, reclaiming its status as a $1 trillion asset and propelling the overall cryptocurrency market, including Ethereum and XRP, beyond $2 trillion, Wall Street behemoth
As Bitcoin breaches the $51,000 mark, reclaiming its status as a $1 trillion asset and propelling the overall cryptocurrency market, including Ethereum and XRP, beyond $2 trillion, Wall Street behemoth JPMorgan has undergone a sudden shift in its outlook on both Bitcoin and the leading crypto exchange Coinbase.
In a noteworthy development, JPMorgan upgraded its rating on Coinbase (COIN) shares from underweight to neutral, citing the recent surge in cryptocurrency prices. The move comes in the wake of the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, a decision that has evidently reshaped JPMorgan’s perspective on the crypto market.
The research report from JPMorgan, released on Thursday, highlights the anticipation of improved activity levels and enhanced earnings power for Coinbase in the first quarter, thanks to the surge in cryptocurrency prices. Despite the upgrade, JPMorgan maintained an unchanged price target of $80 for Coinbase shares.
The approval of spot Bitcoin ETFs, initially perceived as a “sell-the-news” event, has undergone a transformation, according to JPMorgan. The bank notes that this development has translated into significant appreciation in Bitcoin’s value. The report suggests that this appreciation is contributing to increased flows into spot Bitcoin ETFs, subsequently driving Bitcoin prices higher and influencing the upward movement of other tokens.
JPMorgan’s analysts, led by Kenneth Worthington, pointed out that while they are not explicitly recommending Coinbase stock, they acknowledge the impact of enthusiasm generated by the approval of U.S. spot Bitcoin ETFs. This enthusiasm has injected new life into the crypto ecosystem, pulling it out of what the report refers to as the “2022 crypto winter.”
The unexpected change in stance from JPMorgan reflects the evolving dynamics within the cryptocurrency market, with institutional interest and the approval of innovative financial products influencing traditional financial institutions’ views on the sector.
As Bitcoin surpasses key milestones and regulatory developments shape the industry, the relationship between traditional financial giants and the crypto space is entering a new phase, with Coinbase emerging as a focal point in this evolving narrative.
Digital Assets Desk
