By Laura Sanchez
Investing.com – The crypto platform Coinbase (NASDAQ:) fell more than 5% in pre-opening on Wall Street on Monday after sinking more than 7% last Friday.
Bank of America (NYSE:) has downgraded the exchange from buy to neutral due to the collapse of FTX and risks that could affect Coinbase.
The investment bank has also cut its price target to $50 from a previous $77.
So far this November, Coinbase shares have plunged nearly 30%.
While BofA is confident that Coinbase is not another FTX, that does not “make the company immune to the broader consequences in the cryptocurrency market,” the bank notes.
“The team of analysts sees three possible headwinds: lower business activity thanks to weaker confidence in cryptocurrencies, delayed regulatory clarity and the possibility that contagion causes even broader consequences for the industry,” these explain. analysts, as echoed by Coindesk.
The Bank of America downgrade has been a real setback for Coinbase, considering that the bank had been bullish on other occasions. In January 2022, he gave the stock a buy rating and a $340 price target.