JPMorgan downgrades Coinbase stock amid BTC price dip, and wen Ethereum ETFs?

JP Morgan is feeling bearish about the Coinbase stock and the spot Bitcoin ETFs But are they Right good morning you're listening to The ryzen crypto podcast by coin Telegraph with me Robert bags steering You through the crypto Cosmos with daily Dispatches from the digital Frontier if you want to aams razor your Way to the front of the packing crypto You better click that follow button okay Grab yourself a coffee and let's get Into It today's episode is about getting a Lay of the land amidst this wild Volatility we're seeing we're going to Discuss why JP Morgan has downgraded the Coinbase stock to underweight as well as Their thoughts on the spot Bitcoin ETF So far why the ethereum ETF might be Coming sooner than you expect but it Won't bring about the same circus we're Going to look at an analyst take on what The larger macroeconomic concerns are Over Bitcoin and Canada's use of law to Freeze crypto donations to protesters is Deemed Unconstitutional coinbase has become an Unfathomably important animportant part Of crypto in recent years it has not Only become one of the Premier exchanges In the world but between being the Custodian for most of the spot Bitcoin ETFs and coinbase's Flagship legal

Battle with the SEC The Firm represents Enormous importance to the industry in The past year coinbase's stock coin Picked at over a 230% gain but despite The exchange's critical role in the spot Bitcoin ETFs the stock has mirrored the Disappointing movements of Bitcoin JP Morgan's analysts have predicted more Disappointment in the near future for Coin they wrote while we continue to see Coinbase as the dominant US exchange in The crypto ecosystem and a leader in Cryptocurrency trading and investing Globally we think the Catalyst in Bitcoin ETFs that has pushed the Ecosystem out of its winter will Disappoint Market participants they Added that cryptocurrency prices are Already under pressure with Bitcoin Falling below $40,000 as of writing this Note we see greater potential for Cryptocurrency ETF enthusiasm to further Deflate driving with it lower token Prices lower trade volume and lower Ancillary Revenue opportunities for Firms like coinbase JP Morgan has Predicted a price target for coin of Just $80 by December 2024 which would be A painful drop from the $170 highs we Saw at the end of last year nevertheless It is certainly trending in that Direction currently interestingly JP Morgan analysts also discussed the spot Bitcoin ETFs saying that the crypto

Industry has set a high bar for the ETF Launches and that the expectations have Been unrealistic it's kind of hard to AR Argue that point especially in the Current state of play however they also Wrote this we find the spot Bitcoin ETF Flows to date as underwhelming versus The lofty expectations many in the Crypto industry had established in the Runup to the approval as we know the Impressive inflows have been largely Offset and often outrun by grayscale's Hefty outflows and as such I'm not sure Underwhelming is a fair assessment Eric Balinas and James saart from Bloomberg Have both discussed this underwhelming Narrative on several occasions for Example on the 18th of January balcon Ass looked at all ETFs and their onewe Flows even though spot Bitcoin ETFs had Only traded for 4 days they occupied Fourth fifth and 10th in the top 10 of All ETFs by one week flow balonus also Replied to a post on X that called the ETFs underwhelming word for word saying The nine new ones the ETFs are going to End the first week around $4 billion in Assets under management and $6 billion In volume that's like top 0.1% type Numbers for new ETFs and they aren't Really available on all platforms yet so I don't think it will come as a shock to Anyone that the when Moon reaction we See from a lot of cryptops was and is

Unrealistic but then again I don't think It makes much sense to weigh up the spot Bitcoin ETFs performance against those With the wildest of expectations for Them in any ordinary evaluation of the Spot Bitcoin ETFs I would say Underwhelming isn't a fair assessment But what do you think of the spot Bitcoin etf's performance how do you Think they're going so far share your Thoughts to @ cointelegraph and Arc bags On X yesterday Lucas key the chief Investment officer for yield app Published a piece titled an ethereum ETF Is coming sooner than you expect as Always it's a fantastic read and you Should take a look at the whole thing It's linked in the description but I Wanted to give you an overview of the Sentiment and some thoughts around it as We've discussed a few times the approval Of the spot Bitcoin ETFs is a momentous Occasion for crypto not just in what it Might or might not do for the price of Bitcoin but for the precedent it sets on This topic key wrote a concluding Sentence that has stuck with me so in a Kind of backwards way I want to start With it kley wrote with the approval of The spot Bitcoin ETF cryptocurrency is Not only through trad's hallow door but Sitting firmly at its table now more Than the approval of a spot ether ETF we

Can prepare for a fullscale Institutional colonization of the Cryptocurrency industry it's a Conflicting outcome isn't it big banks Are the very thing Bitcoin was designed To replace or at least replace large Parts of and they're becoming a key part Of the crypto industry but it does Legitimize crypto in a way that at least Could be enabling okay so why does key Think that the ethereum ETFs are coming Sooner than we think in fact he rather Boldly States the approval of an Ethereum spot ETF is now not only Certain but imminent the driving force Is that the major objections and hurdles Of crypto-based spot ETFs that we have Seen in the past 10 years were dissolved By grayscale's victory over the SEC in Court key believes that these hurdles Were merely prejudice against Bitcoin in The first place interestingly key also Highlights commissioner Hester Pierce's Daming indictment of the sec's conduct Over the spot Bitcoin ETFs somehow I Hadn't read this entire statement and I'm glad that I now have kely quoted Pierce calling the spot Bitcoin ETF Applications a circus and that whole Paragraph is worth quoting She Wrote by Failing to follow our normal standards And processes in considering spot Bitcoin etps we have created artificial Frenzy around them had these products

Come to Market in the way other Comparable products typically have we Would have avoided the circus atmosphere In which we now find ourselves as key Notes we're unlikely to see a circus With the ethereum ETFs by virtue of one The SEC having set a precedent with Crypto etps after the spot Bitcoin ETF Approvals two the SEC wanting to avoid a Repeat Performance and three the price Action of Bitcoin post ETFs has not been Inspiring so I doubt there'll be as much Moon shot and fomo speculation you might Remember that prior to the approvals Several commenters said that the SEC are Backed into a corner with the spot Bitcoin ETFs and all the reasons they Were stuck in that corner for the Bitcoin ETFs still apply to the ethereum ETFs all I will add and I along with Others have raised this before is that The SEC is going to be acutely aware of This precedent they've set and are going To want to find a way of drawing a line To stop ETFs for any and all Cryptocurrencies how do they do that Well you're guess is as good as mine on The topic of how the spot Bitcoin ETFs Have affected the price of Bitcoin and Really the crypto Market at large Marcel Pekman a highly experienced crypto Analyst and finance professional Published an article on bitcoin's price Weakness of late this piece is a great

Summary of what we're dealing with at The moment and some of it we discussed In part in yesterday's episode for Example one item of news that is Weighing heavy on bitcoin's Price is the Release of the mount GX bankruptcy Estate to its creditors which could see As much as 142,000 Bitcoin returned to The playing field after a decade on the Bench that would tip the market scales Even further towards selling rather than Buying which is already being heavily Tipped of course by grayscale selling 10 To 25,000 Bitcoin per day however one Overarching reason for bitcoin's Price Weakness as Marcel sees it is the US Economy preferring the stock market to Bitcoin I spoke to Marcel about this so Why the macroeconomic scenario has been Favoring stocks instead of Bitcoin Simple because investors are no longing Expecting interest rate cut in March Because the economy is doing fine Investors expect a 1.7% growth for the US GDP and inflation is trending down to 2% so the moment is more favorable for Stocks causing the S&P 500 to reach an Alltime high and not for risk assets Such as Bitcoin this is not the Direction that many forecasted for the US economy it seemed that most eyes were Locked on the interest rate change in March believing it likely would be Raised well that seemed as if it might

Be incorrect but now maybe not as Marcel Writes in this article as per the FED Watch tool from CME Group the likelihood Of an interest rate cut in March dropped To 47% from 81% in the previous week a Lot of crypto commentators including Arthur Hayes of bitmex have suggested That March is going to be a pivotal Month for crypto so that's another one To Mark in your Calendars the Federal Federal Court of Canada has ruled that an emergency law That gave the Canadian government power To freeze funds including crypto that Was going towards the protesting Truckers during covid was unreasonable And unconstitutional back towards the Tail end of covid-19 dictating our daily Lives truckers in Canada started Protesting the pandemic restrictions Then in February 2022 prime minister Justin Trudeau's government invoked the Emergency act this emergency law allowed The government to freeze the flow of Funds to Wards the freedom Convoy Protesters the freedom Convoy used Trucks to block the streets in Ottawa Canada's capital which the government at The time it said was an illegal Occupation the presiding judge over this Case Justice Richard Mosley concluded There was no National Emergency Justifying the invocation of the Emergency Act and the decision to do so

Was therefore unreasonable the case was Brought about by the Canadian civil Liberties Association the ccla and the Canadian Constitution foundation and Other groups challenging the Government's use of the emergency law Arguing that it was unnecessary and Unconstitutional Justice Richard Mosley Added that the government cannot invoke The emergency act because it is Convenient or because it may work better Than other tools at their disposal or Available to their provinces as with Most recent crisis cryptocurrency can Play an important role as it did for the 2022 trucker protests so it's a positive To see that the government cannot frees At will and the ccla said the ruling Sets a clear and critical precedent for Every future future Government lots of high level analysis For you today but that is it so consider Yourself informed thank you for Listening to the ryen crypto podcast by Coin Telegraph if you're enjoying these Daily updates please make sure you let Us know by following subscribing or Leaving a review have a great day let's Do this again [Music] Tomorrow