Coinbase downgraded due to overperformance

02/17/2023 20:48 • Blockchain Briefs • 94 views

It is reported that Chris Brendler, an analyst at DA Davidson, downgraded the rating of Coinbase (COIN) from “buy” to “neutral”, after the stock more than doubled in 2023 and the share price soared above the target price of $55. After the collapse in 2022, the share price of Coinbase rose by 108% to more than $69 this year, while the wider rise of cryptocurrency pushed Bitcoin (BTC) to exceed $25000 for the first time since August earlier on Thursday.

DA Davidson analyst downgraded Coinbase (COIN) rating from buy to neutral

Analysis based on this information:

Coinbase, one of the most prominent cryptocurrency exchanges, has recently been downgraded by an analyst at DA Davidson. Chris Brendler, the analyst, has reportedly bemoaned the impressive success of Coinbase over the past year, with the company’s shares more than doubling in 2023. As it presently stands, the share price of Coinbase is well above the target price of $55, hence why Brendler downgraded the rating of Coinbase from “buy” to “neutral”.

The immense success of Coinbase can be attributed to the overall rise of cryptocurrency, particularly bitcoin, which has seen a remarkable upturn this year. The collapse of Coinbase last year was a massive setback for the cryptocurrency market, but 2021 has seen a resurgence of the market. As a result of this resurgence, the share price of Coinbase has increased by 108% in the space of a year, soaring to over $69.

Coinciding with the rise of crypto is the news that bitcoin has exceeded $25000 for the first time since August, an outstanding achievement for the cryptocurrency market. It can be expected that bitcoin’s surge helped bolster the shares of Coinbase. However, while this surge is impressive, it is not without controversy.

There have been concerns raised about the sustainability of cryptocurrency and the effects it will have on markets in the long-term. The appeal of cryptocurrency is the scarcity of the coins that can be mined, but this appeal is now becoming a double-edged sword. As Bitcoin’s value increases, mining becomes less profitable, leading to less competition, which in turn has a significant effect on the security of the network. As cryptocurrency continues to rise, there must be safeguards in place to ensure proper regulation of this new and untested market.

In conclusion, Coinbase’s downgrade to neutral by DA Davidson analyst Chris Brendler is a testament to the impressive and rapid growth of cryptocurrency, particularly bitcoin, and the impact it’s had on share prices. At the same time, concerns linger about the sustainability of the crypto market, including the effects on the mining network and the lack of regulation. The crypto market still has a long way to go and requires serious consideration to ensure its longevity.

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Coinbase downgraded due to overperformance

DA Davidson analyst downgraded Coinbase (COIN) rating from buy to neutral

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