Coinbase stock could tank 35% despite Bitcoin ETF approval – analyst says

2024 will likely be “a more challenging year” for Coinbase Global Inc (NASDAQ: COIN), says Kenneth Worthington – a JPMorgan analyst.

Coinbase stock has downside to $80

Worthington downgraded the crypto company this morning to “underweight” and said its shares could tank to $80 – which suggests more than a 35% downside from here.  

BTC is now back under $40,000 even though the Securities & Exchange Commission of the United States approved some eleven applications for Spot Bitcoin ETFs on January 10^th (find out more).

The JPM analyst turned bearish on Coinbase stock today primarily because he “sees potential for ETF enthusiasm to further deflate, driving lower token prices and lower trading volume”.

It is conceivable that the Nasdaq-listed firm will suffer in terms of revenue as a result, he added.

Bitcoin ETF expectations are too high

Kenneth Worthington is not entirely convinced that a Bitcoin ETF will significantly boost capital inflow for the crypto space.

At the very least, the analyst expects exchange-traded funds to take longer-than-expected to deliver on that promise. His research note reads:

All in all, the JPM expert is now dovish on Coinbase stock simply because expectations related to the Spot Bitcoin ETFs are a bit too unrealistic. The crypto company is anticipated to lose 12 cents a share in its current financial quarter versus $2.46 per share a year ago.