© Reuters Coinbase (COIN) rose on JPMorgan after Bitcoin rally
Coinbase (NASDAQ 🙂 was upgraded to Neutral from Underweight at JPMorgan on Thursday, with the bank citing the rise in Bitcoin price as its reason. JPMorgan analysts maintained an $80 price target on the stock.
They told investors that Bitcoin's rise increases both the cryptocurrency market and Coinbase's earnings power.
JPMorgan was quite concerned that the enthusiasm for Bitcoin over the past three months was driven by unrealistic optimism about new money entering the cryptocurrency market through the recently approved and launched US spot Bitcoin ETFs.
“However, what was initially a news selling event with the launch of Bitcoin spot ETFs in the US has now turned into significant Bitcoin price appreciation,” JPMorgan analysts acknowledged.
“In our opinion, we believe that this Bitcoin appreciation is contributing to better Bitcoin ETF spot flows, which, in turn, is lifting Bitcoin prices and also driving up other tokens,” they added.
After the acceleration in recent days of flows into Bitcoin ETFs and the significant price appreciation of Bitcoin and now Ethereum, the bank believes that higher cryptocurrency prices not only sustain but improve investment levels. activity and earning power of Coinbase.
