© Reuters
JPMorgan upgraded Coinbase (NASDAQ:) to neutral from underperform on Thursday. The bank changed its rating due to the significant increase in the value of Bitcoin. JPMorgan analysts set an $80 target price for Coinbase shares.
Analysts have informed investors that the increase in the value of Bitcoin increases the cryptocurrency market and Coinbase’s potential revenue.
JPMorgan had previously expressed concerns that the surge in the value of Bitcoin over the past three months may be based on overly optimistic expectations regarding new investments in the cryptocurrency market through the recently authorized Bitcoin exchange-traded funds (ETFs) launched in the United States. United States.
“However, the initial reaction to sell Bitcoin after the introduction of US Bitcoin ETFs has shifted towards a significant increase in the value of Bitcoin,” JPMorgan analysts acknowledged.
“In our view, the increase in the value of Bitcoin is leading to increased inflows into Bitcoin ETFs, which in turn pushes the value of Bitcoin higher and also increases the value of other digital currencies,” they continued .
Following the recent surge in investment in Bitcoin ETFs and the notable appreciation in the value of both Bitcoin and Ethereum, the bank expects high cryptocurrency prices to not only persist, but also increase the level of activity and earning potential of Coinbase.
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