Bitcoin, ether move higher as Goldman Sachs see negative outlook for Coinbase
Quick Take
- Bitcoin was trading up to $17,060, ether rose 4% to $1,284.
- Goldman Sachs cut the target price for Coinbase to $41 from $49, maintaining a sell rating on the stock.
Crypto prices increased even as Wall Street banks predicted more gloom for the industry amid the FTX debacle.
Bitcoin was trading at $17,060, up 3% over the past day, while ether added 4% to trade at $1,284, according to data compiled by CoinGecko.
Binance's BNB gained 3.6% to trade at $290, Solana's SOL jumped 7% to $14.96 and Polygon's MATIC also added 7% to trade at $0.96.
"FTX was a leader in crypto markets, and we believe the collapse of FTX comes as a major surprise and will likely impact investor confidence in crypto markets," Goldman Sachs analysts wrote Friday following the exchange's bankruptcy filing.
RELATED INDICES
The bank lowered its target price for Coinbase to $41 from $49 and maintained a sell rating on the stock.
In the short-term, Coinbase should benefit from the FTX collapse, namely from elevated market volatility and a "flight to safety response as investors shy away from less regulated venues."
The bank expected these impacts would be short-lived, adding that "once volatility levels settle out, we believe the lower level of crypto prices and the potential for reduced investor confidence in the asset class will likely lead to lower volumes."
Key upside risks exist in the form of higher levels of trading activity, new product launches and favorable regulation, Goldman said.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
