Coinbase (COIN) shares are surging on Thursday following an upgrade from JPMorgan analysts to Neutral, coinciding with Bitcoin (BTC-USD) rallying above $52,000. Yahoo Finance Live is analyzing the impact of January’s spot Bitcoin ETF listings on cryptocurrency trading patterns.
The upgrade of Coinbase shares to Neutral by JPMorgan comes amidst the resurgence of Bitcoin and broader cryptocurrency prices. Bitcoin’s surge to $52,000 sees it reclaiming its $1 trillion market cap.
In terms of the overall cryptocurrency market, it’s expected to reach a $2 trillion market cap. I’ll double-check that shortly, but that’s what I saw earlier today. As we consider the catalysts not only for Coinbase but also for Bitcoin as a whole, we continue to discuss the potential implications of the Bitcoin halving event on a broader scale.
Furthermore, regarding the crypto market cap as a whole, the potential introduction of Ethereum ETFs could attract significant attention and investment. We witnessed how this dynamic impacted Robinhood’s earnings this week. This could be another major catalyst worth monitoring.
SEC Chair Gary Gensler’s remarks were intriguing, as he attempted to manage expectations regarding the potential introduction of ETFs for Ethereum futures, contrasting it with the scenario seen with Bitcoin spot ETFs. Gensler seemed less convinced about the prospects of Ethereum spot ETFs.
Ethereum presents a unique challenge as it encompasses both the coin, the token, and the blockchain infrastructure. It’s a more complex ecosystem compared to simply focusing on it as a token. Gensler views it as an exception rather than the norm, highlighting the need for caution when comparing Ethereum’s potential with that of Bitcoin.
In the context of the Coinbase call, JPMorgan highlighted that they believe the appreciation of Bitcoin is contributing to increased flows in spot Bitcoin ETFs, consequently driving up Bitcoin prices and elevating other tokens within the crypto landscape. Additionally, they attributed significant Bitcoin price appreciation to the introduction of US Bitcoin spot ETFs.
While initially perceived as a “sell at the news” event, as mentioned within the call, the Street’s reaction to JPMorgan’s upgrade to neutral from underweight will ultimately determine the outcome. The new price target set for Coinbase is $80.
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