Bank Of America drops Coinbase over FTX’s misdoings

Bank of America chose to equip downgrading due to the FTX crypto exchange catastrophe and its influence on the cryptocurrency market.

Significant financial investment bank Bank of America chose to slash its cost target for Coinbase from $77 to $50 following the FTX insolvency, according to a CoinDesk Nov 18 report. The bank appears positive that Coinbase will not discover the exact same fate as FTX, however that does not “make the business immune from the more comprehensive fallout in the crypto market.” An expert composed:

“The expert group sees 3 possible headwinds: Dampened trading activity thanks to weaker self-confidence in crypto, postponed regulative clearness and the possibility that contagion results in an even larger fallout for the market.”

Bank of America experts likewise kept in mind that in the long-lasting FTX’s fall might lead to Coinbase getting a bigger market share and revenue off of the viewed security thanks to its regulative compliance and security efforts. Regardless of this, the report marks a modification from the bank’s normally very bullish viewpoint on Coinbase that utilized to include a buy ranking and $340 cost target when the stock was trading above $230 back in June.