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Bank Of America Downgrades Coinbase To Neutral

Bank of America Downgrades Coinbase To Neutral

Due to the failure of rival FTX, Coinbase is now facing a variety of additional challenges, according to Bank of America, which Friday lowered its recommendation for the company from buy to neutral.

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Additionally, the bank reduced its price estimate from $77 to $50. Since the beginning of the month, shares of Coinbase have decreased by about 30%.

Although Bank of America is certain that Coinbase is not another FTX, this does not shield the business from the wider repercussions in the cryptocurrency market. Analysts led by Jason Kupferberg said in a note to clients, which showed by Yahoo! Finance:

“We think Coinbase likely faces a number of new headwinds over the near/medium-term due to the recent collapse of rival crypto exchange FTX.”

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Bank of America’s downgrading of the stock referenced an interview Coinbase CFO Alesia Haas made to The Wall Street Journal this week in which Haas stated that the company’s earnings would be impacted by a material decline in the price of Bitcoin.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.