Crypto Stocks Tumble as Bitcoin Drops and Coinbase Gets Downgraded

By: Eliza Bennet

With bitcoin's price plummeting below $39,000, the lowest value since early December, numerous U.S. listed crypto companies saw their share values topple. Coinbase, the prominent crypto exchange, experienced a 5% dip in share value, and MicroStrategy, the business data analysis firm, also saw shares decreasing by 4% during pre-market trading.

JPMorgan analysts contributed to this situation by reducing Coinbase's stocks status from Neutral to Underweight, citing market pressures and potential shifts away from Coinbase due to newly launched exchange-traded funds as reasons. This revision implies a potential decline of 35% in the company's shares, according to analysts.

Crypto miners were not immune to the market downturn either. Bitcoin miners like Marathon Digital Holdings, Riot Platforms, Hut 8 Corp, and CleanSpark noted declines in stock values as well, ranging from 2.05% to 3.19%, signifying the adverse effects of the current bitcoin downfall on diverse segments of the crypto market.

JPMorgan report predicts that the Bitcoin ETF catalyst that pulled the ecosystem from its crypto winter last year may not live up to investor expectations in 2024.