JP Morgan has recently upgraded Coinbase’s rating from “underweight” to “neutral”, which comes at a critical time as the company prepares to announce its full-year results. This upgrade is significant as it reflects the changing dynamics of the market, particularly with the rising prices of Bitcoin and Ethereum.
The brokerage had previously downgraded Coinbase’s rating due to the diminishing hype around Bitcoin ETFs, which had a negative impact on the crypto market. However, with the recent surge in Bitcoin prices, sentiments have improved, leading JP Morgan to change its stance on Coinbase.
The recent spike in Bitcoin’s price has brought renewed interest in the market. This surge came after a prolonged period of low trading, and the approval for spot Bitcoin ETFs further solidified the belief in the mainstream adoption of virtual currency. Despite a brief period of stagnation, Bitcoin has now broken through the $50,000 mark, reaching a market cap of over $1 trillion.
Coinbase’s upcoming earnings report on February 15th will provide valuable insights into the larger crypto market. According to Zacks Equity Research, the company is expected to report a quarterly loss of $0.06 per share, a significant improvement from the previous year. Revenues are expected to be $731.94 million, a 16.4% increase from the same quarter last year.
Investors are eagerly awaiting Coinbase’s financial performance, as the company has been reporting losses since Q1 of 2022. However, the company’s outlook for the future will be a crucial factor in determining its profitability and cash flow. As one of the largest publicly listed crypto firms, Coinbase’s views on the market and its future direction will also provide valuable insights for investors.
In conclusion, JP Morgan’s upgrade of Coinbase’s rating and the upcoming earnings report will play a significant role in shaping the sentiment and trajectory of the crypto market. Investors will be closely watching for any hints of potential profitability and the company’s forecast for the future.