Citibank Bitcoin Exchange Downgrades Coinbase! What Does It Mean For BTC?

Today bitcoin And Ethereum launching a focused offshore exchange coinbaseI received a negative report from Citibank.

Citi analysts, noting the regulatory uncertainty in the US, said that Coinbase will remain under pressure with high levels of uncertainty until cryptocurrency regulations are better addressed in the US.

Coinbase stock (COIN) rating from buy to neutral, Citi cut its Coinbase share price target from $80 to $65.

Analysts led by Peter Chistiansen wrote about Coinbase in their report:

“Ideas of Coinbase reinstitutionalization outside of the US, the company’s public backlash, and the official lawsuit now filed against the SEC are all indications that the Wells Notification process has been inefficient.

Because the failure of Signature Bank and the controversy over whether it’s crypto-related and other negative events over the past year are fodder for the SEC against the crypto industry.”

Noting that Coinbase remains a leader in a category of exchanges, Citi analysts said that if a broader integration of traditional finance and crypto takes place, Coinbase will be in a better position.

Citi has already pointed out that Coinbase is tasked with defending the cryptocurrency industry and paving a more sustainable avenue for regulation.

There is a positive correlation between the price of COIN and the price of Bitcoin.

If Citibank’s expectation comes true, this can be interpreted as a decrease in Bitcoin. However, macroeconomic data signals that the demand for limited-supply assets may increase again in the upcoming period.

For this reason, it is stated that this expectation of Citibank is a low probability for now.

*Not investment advice.