Coinbase’s Rating Gets Positive Boost from JP Morgan; Crypto Bull Run Ahead?

Coinbase on Thursday saw one of the most crucial decisions surface regarding the firm’s position in the market. JP Morgan upgraded the company’s rating to “neutral” from a previous “underweight”. The rating comes at a very crucial time when the company is about to declare its full-year results.

JP Morgan upgrades Coinbase’s rating

JPMorgan upgraded Coinbase’s rating, moving the stock from underweight to neutral. The brokerage now recognizes a significant shift in the dynamics of the market, especially with the prices of Bitcoin and Ethereum. The rating upgrade comes on the back of JP Morgan acknowledging a significant bull run in crypto markets, positioning Coinbase for a better outlook.

The brokerage had previously downgraded the rating stating the waning hype of Bitcoin ETFs which had pressured the crypto markets for some time. However, a recent upward trend in prices has helped boost sentiments in the digital asset world.

Bitcoin price surge boosts market

The rise in the prices of Bitcoin came after a much longer subdued trading session. Right after the approval for spot Bitcoin ETFs landed, the market saw cementing beliefs around the mainstream use of virtual currency. However, a few days after the approval, a rangebound Bitcoin raised questions on the legitimacy of the currency and investor interest in the newly launched financial asset.

But, overcoming all the odds, Bitcoin price broke its rangebound threshold to hit over $50,000 mark, creating a reboot in the market. At the time of writing, the price of the OG-crypto currency stands at $52,196.31, up nearly 2% as compared to the same time yesterday. The market cap of the token has also increased to $1.0 trillion, making it hit an almost all-time high.

Coinbase’s upcoming earnings to give hints to the market

Coinbase’s upcoming results on February 15th will shed light on the larger crypto markets as well. At present the firm is anticipated to record a quarterly loss of $0.06 per share according to Zacks Equity Research. The number indicates a 97.6% upward change from the previous year. Expected revenues are $731.94 million, 16.4% more than the same quarter last year. Currently, if the estimates were to come true then the next priced question is when will the biggest crypto exchange will swing to profit? Coinbase has been reporting continuous losses since Q1 of 2022. This has worried investors about the actual profitability of the company.

An exclusive report by CoinGape shows that the most important part of the company’s results will be the outlook. If Coinbase flags a healthy forecast for the firm in the future, it will further create a positive sentiment around the profitability and cash flow of the firm. Being one of the biggest listed crypto firms, the company’s views and anticipation around crypto markets will also give cues to investors about the trajectory of crypto markets in the future.