Coinbase (NASDAQ: COIN) was raised to impartial from Underweight at JPMorgan on Thursday, with the financial institution citing the surge within the Bitcoin worth as its cause. Analyst Kenneth Worthington maintained an $80 worth goal on the inventory.
He informed traders that the Bitcoin rise takes each the crypto market and Coinbase’s earnings energy larger.
JPMorgan had been fairly involved that the passion in Bitcoin during the last three months was being pushed by unrealistic optimism for brand new cash going into the cryptocurrency market via the newly authorized and not too long ago launched U.S. spot Bitcoin ETFs.
“Nonetheless, what was initially a sell-the-news occasion with the launch of U.S. Bitcoin spot ETFs has now was significant Bitcoin worth appreciation,” acknowledged Worthington.
“In our opinion, we predict this Bitcoin appreciation is contributing to higher spot Bitcoin ETF flows, which is, in flip, driving Bitcoin costs larger and pulling different tokens larger as nicely,” he added.
After the acceleration in current days of flows into Bitcoin ETFs and the numerous worth appreciation of Bitcoin and now Ethereum, the financial institution sees the upper cryptocurrency costs not solely sustaining however bettering exercise ranges and Coinbase’s earnings energy.
By Sam Boughedda