Coinbase Boosted at JPMorgan After Bitcoin Rally
JPMorgan Upgrades Coinbase
On Thursday, JPMorgan upgraded Coinbase (NASDAQ:) from Underweight to neutral, attributing the move to the surge in the price of Bitcoin. The bank also maintained an $80 price target for the stock.
Bitcoin Surge Driving Market and Earnings
The analysts at JPMorgan explained that the rise in Bitcoin has not only impacted the cryptocurrency market but also Coinbase’s earnings potential. They highlighted that the surge in Bitcoin is driving both the crypto market and Coinbase’s earnings higher.
JPMorgan’s Previous Concerns
Prior to the upgrade, JPMorgan had expressed concerns about the Bitcoin enthusiasm, attributing it to unrealistic optimism surrounding the approval and launch of U.S. spot Bitcoin ETFs. However, the analysts acknowledged that the initial “sell-the-news” event turned into significant Bitcoin price appreciation.
Impact of Bitcoin Appreciation
JPMorgan believes that the appreciation in Bitcoin is contributing to improved spot Bitcoin ETF flows, subsequently driving Bitcoin prices higher and positively influencing other tokens as well.
Positive Outlook for Coinbase
With the recent acceleration in flows into Bitcoin ETFs and the substantial price appreciation of Bitcoin and Ethereum, JPMorgan anticipates sustained and improved activity levels and earnings power for Coinbase due to the higher cryptocurrency prices.
