JPMorgan Chase raises Coinbase target price to $150, emphasizes gold investors have not shifted to Bitcoin

Despite Coinbase's fivefold increase since 2022, JPMorgan still maintains a neutral rating on Coinbase, but has raised the target price from $95 to $150.

JPMorgan: Gold Investors Aren't Switching to Bitcoin

CoinDesk quotes a JPMorgan analysis report led by analyst Nikolaos Panigirtzoglou, stating that institutions and retail investors have been investing in both gold and bitcoin this year, rather than switching to bitcoin as some analysts claim.

The analyst mentioned:

In addition to retail investors, speculative institutional investors such as commodity trading advisors (CTAs) and hedge funds seem to have entered the gold and bitcoin futures markets since February. Bitcoin's open interest in futures contracts has surged by $7 billion since February, while gold futures have increased by $30 billion.

The report also suggests that both assets carry a high risk of mean reversion, indicating that both assets may fall back to their mean values.

JPMorgan Maintains Neutral Rating on Coinbase, Raises Target Price

JPMorgan also points out that the upgrade will bring long-term positive effects to Ethereum and further become one of the driving forces for Coinbase COIN's revenue growth. Coinbase's Ethereum staking market share is only second to Lido.

Despite this, JPMorgan maintains a neutral rating on Coinbase but raises the target price from $95 to $150.

In early March, Goldman Sachs, another Wall Street institution, ended its nearly two-year bearish stance on Coinbase, upgrading COIN from sell to neutral.

Goldman Sachs downgraded COIN to sell on June 17, 2022, and since then, COIN has achieved over a 400% increase.

Fivefold Increase After Downgrading to Sell, Goldman Sachs Ends Bearish Stance on Coinbase, Upgrades to Neutral

COIN dropped by about 10% this week, closing at $242.