Shares of cryptocurrency exchange Coinbase Global, Inc. (NASDAQ:COIN) fell sharply in premarket trading on Tuesday.
The downside comes amid the lackluster sentiment relayed by the stock futures. The broader market will likely tread water after touching record highs in two successive sessions.
Coinbase’s shares could also be reacting the sell-off in the cryptocurrency market, especially after the SEC greenlighted the spot Bitcoin (CRYPTO: BTC) exchange-traded fund. Over the past 24 hours, Bitcoin has shed about 4.50% and traded below $39,000.
Also, JPMorgan analysts downgraded Coinbase shares to Underweight from Neutral, while maintaining the $80 price target, excerpts from the note shared on X showed.
“While we continue to see Coinbase as the dominant U.S. exchange in the cryptoecosystem 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,” the analysts reportedly said.
“We see greater potential for cryptocurrency ETF enthusiasm to further deflate, driving with it lower token prices, lower trading volume, and lower ancillary revenue opportunities for firms like Coinbase.”
In premarket trading, Coinbase fell 4.17% to $122.86, according to Benzinga Pro data.
See Also: Best Cryptocurrency Exchange
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