{"id":36168,"date":"2024-02-16T06:52:47","date_gmt":"2024-02-16T10:52:47","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=36168"},"modified":"2024-02-16T06:52:47","modified_gmt":"2024-02-16T10:52:47","slug":"bitcoin-etfs-boosts-coinbase-coin-shares-as-jpmorgan-upgrades-rating","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2024\/02\/16\/bitcoin-etfs-boosts-coinbase-coin-shares-as-jpmorgan-upgrades-rating\/","title":{"rendered":"Bitcoin ETFs Boosts Coinbase (COIN) Shares As JPMorgan Upgrades Rating"},"content":{"rendered":"

The recent Bitcoin rally, propelling its price to the $52,000 level, has positively impacted the stock of US-based cryptocurrency exchange<\/a> Coinbase (COIN). After experiencing a notable dip to $115 at the start of February, Coinbase\u2019s stock rose to $172 on Thursday, following a significant upgrade by a JPMorgan analyst.<\/p>\n

Improved Prospects For Coinbase Amid Crypto Rally<\/h2>\n

According to a Bloomberg report<\/a>, JPMorgan analyst Kenneth Worthington abandoned his bearish view on Coinbase weeks after downgrading the stock.\u00a0<\/p>\n

As Bitcoin traded higher, Coinbase shares gained as much as 7.8% following the upgrade. Worthington believes the exchange will likely benefit from the recent rally in digital asset prices, prompting him to shift his rating back to neutral.<\/p>\n

This change in stance comes after Worthington\u2019s January downgrade, where he predicted a potential deflation of enthusiasm for Bitcoin exchange-traded funds (ETFs).\u00a0<\/p>\n

However, contrary to his previous forecast, Bitcoin ETFs have been successful in terms of trading measures, and the price of Bitcoin has surged beyond $52,000, reaching its highest level since 2021. In a note to clients on Thursday, Worthington explained:<\/p>\n

Given the acceleration in recent days of flows into Bitcoin ETFs and the significant price appreciation of Bitcoin and now Ethereum, we are returning to a Neutral rating on Coinbase as we see the higher cryptocurrency prices not only sustaining but improving activity levels and Coinbase\u2019s earnings power as we look to 1Q24.<\/p>\n

Coinbase\u2019s stock experienced an 8% dip at the beginning of the year, following an impressive 400% surge in 2023. Analyst opinions on the stock remain divided, with buy, hold, and sell recommendations being roughly evenly split.\u00a0<\/p>\n

Worthington maintained his $80 price target on the stock ahead of the company\u2019s earnings report, which is scheduled to be released after the market closes on Thursday.<\/p>\n

Worthington emphasized that Coinbase\u2019s business is closely tied to token prices, with its core revenue being transaction-based<\/a>. As the value of tokens increases and trading activity gains momentum, fees based on the value traded are expected to drive higher trading volumes, ultimately contributing to improved revenue for Coinbase.<\/p>\n

Bitcoin ETFs Witness Significant Trading Volume\u00a0<\/h2>\n

On February 14th, the trading volume of Bitcoin ETFs showcased <\/a>notable figures, with Blackrock\u2019s IBIT recording the lead with $721 million in volume.\u00a0<\/p>\n

Grayscale\u2019s Bitcoin Trust (GBTC) followed closely with $619 million, while Fidelity\u2019s FBTC secured the third spot with $456 million. On the other hand, Ark Invest accumulated a volume of $169 million.<\/p>\n

The nine ETFs\u2019 total trading volume\u00a0<\/a>amounted to approximately $1.5 billion. Notably, the largest ETFs experienced higher trading volume than the previous day, with IBIT surpassing $700 million and GBTC exceeding $600 million.<\/p>\n

Intriguingly, before the trading session, GBTC sent less than half of the Bitcoin it sent to Coinbase the previous day. Despite this decrease, GBTC\u2019s total trading volume <\/a>was 50% higher.<\/p>\n

As the demand for Bitcoin continues to surge, ETFs play a crucial role in facilitating institutional and retail investors\u2019 participation in the cryptocurrency market. The increased trading volume of Bitcoin ETFs highlights investors\u2019 growing interest and confidence in digital assets.<\/p>\n

Currently, Bitcoin is trading at $51,900 and encountering a critical resistance level at $52,000.\u00a0<\/p>\n

Featured image from Shutterstock, chart from TradingView.com <\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

The recent Bitcoin rally, propelling its price to the $52,000 level, has positively impacted the stock of US-based cryptocurrency exchange<\/a> Coinbase (COIN). After experiencing a notable dip to $115 at the start of February, Coinbase\u2019s stock rose to $172 on Thursday, following a significant upgrade by a JPMorgan analyst.<\/p>\n

Improved Prospects For Coinbase Amid Crypto Rally<\/h2>\n

According to a Bloomberg report<\/a>, JPMorgan analyst Kenneth Worthington abandoned his bearish view on Coinbase weeks after downgrading the stock.\u00a0<\/p>\n

As Bitcoin traded higher, Coinbase shares gained as much as 7.8% following the upgrade. Worthington believes the exchange will likely benefit from the recent rally in digital asset prices, prompting him to shift his rating back to neutral.<\/p>\n

This change in stance comes after Worthington\u2019s January downgrade, where he predicted a potential deflation of enthusiasm for Bitcoin exchange-traded funds (ETFs).\u00a0<\/p>\n

However, contrary to his previous forecast, Bitcoin ETFs have been successful in terms of trading measures, and the price of Bitcoin has surged beyond $52,000, reaching its highest level since 2021. In a note to clients on Thursday, Worthington explained:<\/p>\n

Given the acceleration in recent days of flows into Bitcoin ETFs and the significant price appreciation of Bitcoin and now Ethereum, we are returning to a Neutral rating on Coinbase as we see the higher cryptocurrency prices not only sustaining but improving activity levels and Coinbase\u2019s earnings power as we look to 1Q24.<\/p>\n

Coinbase\u2019s stock experienced an 8% dip at the beginning of the year, following an impressive 400% surge in 2023. Analyst opinions on the stock remain divided, with buy, hold, and sell recommendations being roughly evenly split.\u00a0<\/p>\n

Worthington maintained his $80 price target on the stock ahead of the company\u2019s earnings report, which is scheduled to be released after the market closes on Thursday.<\/p>\n

Worthington emphasized that Coinbase\u2019s business is closely tied to token prices, with its core revenue being transaction-based<\/a>. As the value of tokens increases and trading activity gains momentum, fees based on the value traded are expected to drive higher trading volumes, ultimately contributing to improved revenue for Coinbase.<\/p>\n

Bitcoin ETFs Witness Significant Trading Volume\u00a0<\/h2>\n

On February 14th, the trading volume of Bitcoin ETFs showcased <\/a>notable figures, with Blackrock\u2019s IBIT recording the lead with $721 million in volume.\u00a0<\/p>\n

Grayscale\u2019s Bitcoin Trust (GBTC) followed closely with $619 million, while Fidelity\u2019s FBTC secured the third spot with $456 million. On the other hand, Ark Invest accumulated a volume of $169 million.<\/p>\n

The nine ETFs\u2019 total trading volume\u00a0<\/a>amounted to approximately $1.5 billion. Notably, the largest ETFs experienced higher trading volume than the previous day, with IBIT surpassing $700 million and GBTC exceeding $600 million.<\/p>\n

Intriguingly, before the trading session, GBTC sent less than half of the Bitcoin it sent to Coinbase the previous day. Despite this decrease, GBTC\u2019s total trading volume <\/a>was 50% higher.<\/p>\n

As the demand for Bitcoin continues to surge, ETFs play a crucial role in facilitating institutional and retail investors\u2019 participation in the cryptocurrency market. The increased trading volume of Bitcoin ETFs highlights investors\u2019 growing interest and confidence in digital assets.<\/p>\n

Currently, Bitcoin is trading at $51,900 and encountering a critical resistance level at $52,000.\u00a0<\/p>\n

Featured image from Shutterstock, chart from TradingView.com <\/p>\n

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