Bitcoin ETFs Boosts Coinbase (COIN) Shares As JPMorgan Upgrades Rating
16 Fevereiro 2024 - 3:00AM
NEWSBTC
The recent Bitcoin rally, propelling its price to the $52,000
level, has positively impacted the stock of US-based cryptocurrency
exchange Coinbase (COIN). After experiencing a notable dip to $115
at the start of February, Coinbase’s stock rose to $172 on
Thursday, following a significant upgrade by a JPMorgan analyst.
Improved Prospects For Coinbase Amid Crypto Rally According to a
Bloomberg report, JPMorgan analyst Kenneth Worthington abandoned
his bearish view on Coinbase weeks after downgrading the
stock. 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. Related
Reading: Dogecoin Price Prediction – DOGE Pump To $0.12 Seems
Imminent This change in stance comes after Worthington’s January
downgrade, where he predicted a potential deflation of enthusiasm
for Bitcoin exchange-traded funds (ETFs). 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: 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’s earnings power as we look to 1Q24. Coinbase’s 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. Worthington maintained his $80 price target on
the stock ahead of the company’s earnings report, which is
scheduled to be released after the market closes on Thursday.
Worthington emphasized that Coinbase’s business is closely tied to
token prices, with its core revenue being transaction-based. 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.
Bitcoin ETFs Witness Significant Trading Volume On February
14th, the trading volume of Bitcoin ETFs showcased notable figures,
with Blackrock’s IBIT recording the lead with $721 million in
volume. Grayscale’s Bitcoin Trust (GBTC) followed closely
with $619 million, while Fidelity’s FBTC secured the third spot
with $456 million. On the other hand, Ark Invest accumulated a
volume of $169 million. The nine ETFs’ total trading
volume 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. Intriguingly, before the trading session, GBTC sent less
than half of the Bitcoin it sent to Coinbase the previous day.
Despite this decrease, GBTC’s total trading volume was 50% higher.
Related Reading: $400 XRP Price Point: Analyst Breaks Down The
Future Surge Date As the demand for Bitcoin continues to surge,
ETFs play a crucial role in facilitating institutional and retail
investors’ participation in the cryptocurrency market. The
increased trading volume of Bitcoin ETFs highlights investors’
growing interest and confidence in digital assets. Currently,
Bitcoin is trading at $51,900 and encountering a critical
resistance level at $52,000. Featured image from
Shutterstock, chart from TradingView.com
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