Coinbase downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded Coinbase to Underweight from Neutral with an unchanged price target of $80. The analyst continues to see Coinbase as the dominant U.S. exchange in the crypto ecosystem and a leader in cryptocurrency trading and investing globally. However, the firm thinks the catalyst in bitcoin exchange traded funds that has pushed the ecosystem out of its winter will disappoint market participants. Cryptocurrency prices are already under pressure, with bitcoin falling below $40,000, and there is 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, the analyst tells investors in a research note. JPMorgan sees the potential for 2024 to be a more challenging year for Coinbase shares.