As you may know, banks regularly research stocks and rank them based on their performance and future prospects. Remarkably, analysts at the World Bank JPMorgan have the shares of Cryptocurrency Exchange Coinbase as “underweight” assessed. This means they expect the company to underperform broader market expectations.
“Despite the good news, the possibility of a Bitcoin crash remains”
Wallets and exchanges
Crypto exchange Coinbase receives a negative statement from JPMorgan
The classification is partly related to the negative trend that the entire crypto market is experiencing. Coinbase is logically closely linked to its performance. After the long-awaited launch of Bitcoin (BTC) Prices for spot exchange-traded funds (ETFs) have started to fall. While the value was last at $49,000, we are now at a price of $39,000.
JPMorgan analysts believe enthusiasm for cryptocurrency ETFs will only continue to decline. According to them, this will lead to lower prices, lower trading volume and ultimately less revenue for Coinbase.
Investors who own or are considering purchasing Coinbase shares should consider the possibility of short- to medium-term decline in value. It might take some time for a positive mood to emerge.
Coinbase is having a hard time with American regulators
In addition, there are still uncertainties surrounding the company in terms of regulation, which also puts pressure on the price. The crypto exchange is regulated by the US Securities and Exchange Commission (SEC). accused for unauthorized sales of securities and failure to comply with registration requirements. However, Coinbase has called for the allegations to be completely dismissed.
The exchange states that the cryptocurrencies offered should not be considered securities. The SEC, on the other hand, claims that Coinbase falls within its regulatory scope due to its management of customer assets and payment of rewards. Bloomberg senior analyst Elliott Stein predicts a 70% chance of acquittal for Coinbase in this case.
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