The relationship between spot Bitcoin (CRYPTO: BTC) ETF flows and analyst coverage of crypto-exposed equities has become one of Wall Street’s most closely watched dynamics. As Bitcoin trades around $86,000 following recent volatility, the flow patterns are directly shaping how analysts view Coinbase Global Inc. (NASDAQ:COIN) and Strategy Inc. (NASDAQ:MSTR), formerly known as MicroStrategy.
ETF Flows Show Weakness
Bitcoin ETF flows have weakened significantly in recent weeks. On Friday, December 12, total Bitcoin ETPs registered net outflows of approximately $154.2 million. BlackRock Inc.’s (NYSE:BLK) iShares Bitcoin Trust has experienced over $2.7 billion in outflows over the past five weeks, its longest redemption streak since launching in early 2024.
During Bitcoin’s rally to new highs earlier this year, daily net inflows regularly hit $500 million and occasionally exceeded $1 billion. Current flows sit at just $54.8 million on average, signaling significantly weaker institutional demand at these price levels.
Coinbase Analyst Views Diverge
The ETF flow weakness has directly influenced Wall Street’s view of Coinbase. Consensus among 26 analysts remains a Buy rating with an average price target of $385.13, implying 44% upside from current levels around $267. But recent changes reveal growing caution.
Barclays maintained its Equal Weight rating while cutting its price target from $357 to $291 on December 12, an 18.49% reduction citing valuation concerns and uncertainty around trading volume sustainability. Goldman Sachs Group Inc. (NYSE:GS) previously lowered its target from $368 to $314 in November.
Conversely, Monness, Crespi, Hardt upgraded Coinbase from Neutral to Buy on November 10 with a $375 target, arguing the company’s infrastructure positioning and diversified revenue streams justify a premium.
When Bitcoin ETF inflows accelerate, trading activity across Coinbase’s platform follows, boosting transaction revenue. When flows turn negative, volumes dry …Full story available on Benzinga.com
Bitcoin Price Prediction: Whats Next After Crash Below $86k
...
Read moreDetails
