Bank Of America Investors Warn About Bitcoin Exchange Coinbase!

USA’s largest cryptocurrency stock market coinbasewas heavily affected by the crypto winter of 2022.

Because the stock of Coinbase, which made large-scale layoffs, also experienced a large decrease.

Addressing this drop in Coinbase shares, Bank of America Analyst Jason Kupferberg announced that they downgraded Coinbase’s rating from neutral to underperforming, stating that the stock market’s 2023 forecasts are still too high.

The giant bank also stated that Coinbase’s trading volumes in December were weak for the first time since collapsing rival FTX’s bankruptcy, adding that Wall Street’s forecasts for the company and crypto in general for the next year are still very optimistic.

Because according to Wall Street, the bank expects Coinbase’s transaction volumes to be around $49 billion per month, while Wall Street companies coinbase It expects volumes to rise to approximately $67 billion per month, close to last year’s average.

BoF He also stated that the shares of Coinbase may decline despite hitting a one-month high after the exchange announced that it would lay off 20% of its employees.

In this context, the bank, which cut Coinbase’s stock (COIN) price target from $50 to $35, marked a tough year for the broader digital assets industry.

The bank’s target of $35 means that Coinbase stock could drop another 18%.

“Given together the rising regulatory uncertainty and the faltering consumer confidence due to the bankruptcy of FTX, we think retail crypto market participation will remain stagnant in 2023.

And we note that the retail purchase rates of COIN are 90 times the institutional rates.”