The downturn for cryptocurrency could lead to a retrenchment for Coinbase , according to JPMorgan. Analyst Kenneth Worthington downgraded Coinbase to neutral from overweight, saying in a note to clients that the slide in bitcoin and other digital assets will make it difficult for the exchange to make money. “While we continue to be believers in the cryptocurrency markets and blockchain technology, the extreme decline in the price of cryptocurrency markets in 2Q22 combined with Coinbase’s ramp in investment would appear to not only make it challenging for it to generate a profit in the near future but also to meet its annual loss cap of $500mn of annual EBITDA ,” Worthington wrote. The price of bitcoin briefly fell below $21,000 overnight and is down more than 60% from its record high late last year. Coinbase has fallen in tandem with crypto, dropping 79% year to date. The company has instituted a hiring freeze and rescinded job offers to control costs. In addition to the falling...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...