JPMorgan Warns of Coinbase Stock Downfall, Meta Faces Scrutiny over Crypto Plans
Summary:
JPMorgan analysts have downgraded Coinbase's stock, citing Bitcoin's poor price performance. Meanwhile, blockchain research platform Arkham Intelligence has identified the on-chain Bitcoin addresses of several U.S. spot Bitcoin ETFs. Amid its cryptocurrency-related trademark filings, Mark Zuckerberg's Meta is under pressure from U.S. lawmakers to reveal its plans for blockchain and crypto.
JPMorgan analysts are warning that Coinbase's (COIN) shares could experience considerable losses this year. In related news, on-chain Bitcoin (BTC) addresses of several U.S. spot BTC Exchange Traded Funds (ETF) have reportedly been discovered by Arkham Intelligence, a blockchain research firm. Given its recent cryptocurrency-related trademark filings, U.S. legislators are pressing Meta, led by Mark Zuckerberg, for transparency regarding its intentions.
JPMorgan has downgraded Coinbase's stock, blaming less than promising price performance from Bitcoin following the approval of nine ETFs. In an investor briefing, the analysts suggested that despite Coinbase’s tenure as the leading U.S. crypto platform, and international presence, the positive market effect of Bitcoin ETFs may not meet expectations. Maintaining a year-end target of $80 for COIN's value – down from approximately $124, this indicates a possible 35% decline.
Bitcoin has slipped under the $40,000 mark again due to increased offloading, spurred on by Grayscale's Bitcoin Trust (GBTC). Despite GBTC's divestments, over $1.1 billion has flowed into Bitcoin's ETFs, says Bloomberg analyst, James Seyffart.
Arkham Intelligence has unmasked the on-chain Bitcoin addresses of multiple U.S.-based spot Bitcoin ETFs. According to their findings, BlackRock’s iShares Bitcoin Trust (IBIT) holds 33,430 BTC, equivalent to $1.3 billion - matching BlackRock's public figures. GBTC remains the largest spot Bitcoin ETF, with holdings of 558,280 BTC or $29 billion. However, revealing the on-chain addresses of spot Bitcoin ETFs also raises security concerns, industry insiders have cautioned.
Meta faces probing from the U.S. House Financial Services Committee about its blockchain or cryptocurrency intentions, given that five relevant trademark applications are still active from 2022. Maxine Waters, a ranking member of the committee, expressed in a letter dated January 22 to Meta's CEO Mark Zuckerberg and COO Javier Olivan, that the applications imply a continued interest in digital asset expansion.
Waters noted that Meta appears to be engaging in digital asset activities, despite affirming to Democratic Financial Services Committee staff in October 2023 that no such work was being carried out. The trademark applications cover a myriad of services including crypto trading, exchange, transfers, payments, wallets, and the related software and hardware.
This article doesn't offer investment counselling or suggestions. Each investment and trading movement carries risk, and it is advised for readers to conduct their own due diligence.
Published At
1/23/2024 10:14:24 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.