- The price of COIN dropped by 8% at the time of writing, and it is now trading at $34.32.
- The experts have lowered their price prediction for COIN from $75 to $36.
Financial services company Cowen’s analysts lowered their rating on cryptocurrency exchange Coinbase on Thursday. Following FTX’s demise and the general fall in trading volumes in the cryptocurrency market. Crypto firms are under closer scrutiny than ever. The price of COIN dropped by 8.89% at the time of writing, and it is now trading at $34.32.
Stock in Coinbase (COIN) has been downgraded from “Outperform” to “Market Perform” by Cowen, disappointing investors who had hoped to profit from a rebound in the cryptocurrency market.
Tough Times For Crypto Sector
Analysts at Cowen, including Stephen Glagola and George Kuhle, feel that the SEC and CFTC are paying closer attention to the cryptocurrency industry after the demise of Sam Bankman-Fried’s crypto exchange FTX.
The experts have lowered their price prediction for COIN from $75 to $36. Shares of Coinbase plunged from $232 a year ago to $37.70 at Wednesday’s closing, a decline of over 84% in 2022. The price of COIN has fallen by 8% in the early going of trade, trading at $34.32 at the time of writing.
Mizhuo predicted a 30% decrease in COIN stock and downgraded Coinbase to “underperform” in December. The major reasons for the downgrading were the loss in income owing to the continued decline in crypto prices and the FTX situation.
Coinbase was fined $50 million by the New York State Department of Financial Services for enabling users to create accounts without undergoing verification procedures. The exchange will also spend $50 million on enhancing its compliance procedures.
Yet analysts continue to have faith that the cryptocurrency sector will bounce back in 2023. Cathie Wood, CEO of Ark Invest, has been stockpiling Coinbase shares in anticipation of a 2023 turnaround, she says.
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