Bitcoin and Ethereum: New Revolutions on the Market.
Coinbase Stocks Soar After JPMorgan Upgrades Rating
Coinbase (COIN) stocks surged after analysts at JPMorgan upgraded their rating on the cryptocurrency exchange to Neutral. This move is directly linked to the rise in the price of Bitcoin (BTC-USD) above $52,000, which had a positive impact on the entire cryptocurrency market.
Bitcoin Price Surge Boosts Market Flows
JPMorgan noted that the increase in the price of Bitcoin has a positive effect on the flows of this cryptocurrency in the market. This, in turn, leads to an increase in the value of Bitcoin and other cryptocurrencies. Currently, the price of Bitcoin has reached $52,000, restoring the total market value to $1 trillion.
New Price Target for Coinbase
JPMorgan’s decision to upgrade Coinbase’s rating to Neutral is also accompanied by a new price target set at $80. This signals positive expectations for the further development of the company against the backdrop of a growing cryptocurrency market.
SEC Scrutinizing Cryptocurrency ETFs
The situation in the cryptocurrency market is further shaped by the actions of the SEC, which are aimed at curbing speculation regarding the introduction of cryptocurrency ETFs. The focus is particularly on Ethereum, a more complex cryptocurrency than Bitcoin. Nevertheless, there is a growing interest among investors and a possibility of introducing an ETF for Ethereum, which may open up new investment opportunities.
Differing Approach to Ethereum
Gary Gensler, the head of the SEC, emphasizes that the approach to Ethereum will be different from that of Bitcoin due to differences in both the cryptocurrency itself and the blockchain on which this platform is based. This suggests that regulations concerning different cryptocurrencies may be tailored to their specific characteristics and market functioning.
Impact of Bitcoin ETF on the Cryptocurrency Market
The introduction of a Bitcoin ETF in the American market has contributed to the rise in the price of this cryptocurrency and had a positive impact on the increase in the value of other tokens in the cryptocurrency market. As observed by JPMorgan, initially after the introduction of the Bitcoin ETF, there was a tendency to “sell on good news,” but currently, the increasing flows of Bitcoin support the development of the entire cryptocurrency market.
