Bitcoin ETF Disappointment: Continued Dip & Downgrade of Coinbase Stock by JPMorgan

Bitcoin ETF Disappointment: Continued Dip & Downgrade of Coinbase Stock by JPMorgan

According to a report by www.deraktionaer.de,

Bitcoin fell below $39,000 on Tuesday, its lowest level since early December. The hype surrounding spot ETFs has definitely passed. Coinbase shares will also feel this on Tuesday, as they are also struggling with a downgrade from JPMorgan.

Despite the approval of Bitcoin spot ETFs by the US Securities and Exchange Commission almost two weeks ago, Bitcoin lost around 20 percent of its value at its peak. Crypto prices initially rose, but began to decline shortly afterwards. These ongoing losses in the crypto market are surprising, as experts and investors had actually been counting on tailwinds. The euphoria surrounding the initial approval of a Bitcoin spot ETF has finally disappeared. The disappointment surrounding Bitcoin ETFs is also affecting Coinbase shares, which recently lost 3.2 percent.

The reasons for the price losses could be, on the one hand, speculation that the SEC's positive vote had already driven up the price and that profit-taking had begun. On the other hand, it is suspected that the regulatory authorities could take an even closer look at Bitcoin after ETF approval. This loss even prompted JPMorgan to downgrade Coinbase to “Underweight” with a price target of just $80. The shares of the crypto platform operator are therefore suffering from developments on the crypto market.

Recent events clearly show that the hype surrounding the approval of Bitcoin spot ETFs has faded and crypto prices have lost value. Investors and market participants are expected to be more skeptical and cautious about cryptocurrencies and their future prospects. This could lead to a decline in trading volumes and investments in cryptocurrencies as disappointment with Bitcoin ETFs continues.