Piper Sandler analyst Patrick Morley said that due to the ongoing legal battle with the Securities and Exchange Commission (SEC) and continued ambiguity over U.S. cryptocurrency regulation, It reportedly downgraded Coinbase. BNN Bloomberg.
On July 5, Morey said regulatory uncertainty had made it very difficult to cautiously predict Coinbase’s future earnings, lowering his rating from ‘overweight’ to ‘overweight’. Changed to Neutral.
Morley’s recommendation for the largest U.S. cryptocurrency exchange has been revised from Overweight to Neutral. He expects quarterly trading volume and total monthly trading users in the second quarter to hit their lowest levels in more than two years. Bloomberg reported that Morey commented:
“Rising cryptocurrency prices have not led to increased trading volumes on Coinbase in recent quarters, and no one can speculate when the Spot Bitcoin ETF will be approved.”
Nonetheless, Morey sees Coinbase as having the potential to become a significant player in the cryptocurrency industry if regulatory clarity can be achieved.
Moody’s also downgraded Coinbase from “stable” to “negative” in June, commenting on Coinbase’s “healthy liquidity position.” Moody’s said:
“Coinbase’s affirmative rating reflects the company’s strong liquidity position, its recent improvement in cash flow generation due to prudent expense management, and the SEC’s charges relate only to some of Coinbase’s products. because it excludes major trading products.”
moreover, crypto slate As previously reported, Coinbase’s market share is steadily rising despite the SEC lawsuit. This increase in market power, which reached 64% in June, coincided with the SEC being indicted for alleged violations of federal securities laws.
The SEC lawsuit has raised concerns, but that hasn’t stopped traditional financial institutions from partnering with Coinbase. Major companies such as BlackRock, Fidelity and ARK Investments have selected Coinbase as their monitoring sharing partner for spot Bitcoin Exchange Traded Fund (ETF) applications.
Despite the looming uncertainty over Coinbase’s future earnings, the resubmission of several spot Bitcoin ETF applications that clearly stated their intention to enter into a monitoring sharing agreement with Coinbase has prompted cryptocurrency exchanges to resubmit. reflects the continued trust of
BNN Bloomberg pointed out:
“Of the analysts tracked by Bloomberg, 11 recommend buying Coinbase stock, while 13 hold it and eight sell.”
The Coinbase article, which was downgraded by analysts amid a regulatory battle, first appeared on CryptoSlate.
