On Thursday, JPMorgan upgraded Coinbase (NASDAQ:) from underweight to impartial, with the financial institution citing rising Bitcoin costs as the explanation. JPMorgan analysts maintained their worth goal on the inventory at $80.

They advised traders {that a} rise in Bitcoin would enhance each the cryptocurrency market and Coinbase's profitability.

JP Morgan believes that the Bitcoin frenzy over the previous three months has been pushed by unrealistic optimism about new capital flowing into the crypto market via the newly accepted and just lately launched US Spot Bitcoin ETF. I used to be fairly involved that there is perhaps.

“Nonetheless, what was initially a advertising and marketing occasion with the launch of a US Bitcoin spot ETF has now was a major enhance in Bitcoin costs,” acknowledged a JPMorgan analyst.

“In our opinion, this Bitcoin rally is contributing to an enchancment in Spot Bitcoin ETF flows, which in flip drives Bitcoin costs larger, and different tokens as properly. ” they added.

Following accelerating inflows into Bitcoin ETFs in current days, and important worth will increase for Bitcoin and now Ethereum, the financial institution believes that rising crypto costs are sustaining exercise ranges and Coinbase's profitability. I feel it is not going to solely enhance, but additionally enhance.