Coinbase Global’s (NASDAQ:COIN) stock exhibited a robust surge of 8.1% in Thursday’s premarket trading following a notable upgrade by J.P. Morgan. The investment banking giant raised the cryptocurrency exchange’s rating to Neutral from Underweight, citing the remarkable surge in crypto prices over the past three months.

Notably, Bitcoin (BTC-USD), the leading cryptocurrency in terms of market capitalization, has experienced a substantial 38% surge since November 14, propelling the enthusiasm for cryptocurrencies to new heights.

Analyst Kenneth Worthington, who was previously cautious about the sustainability of crypto market enthusiasm following the launch of bitcoin ETFs in January, conveyed a noteworthy shift in sentiment. “However, what was initially a sell-the-news event with the launch of U.S. bitcoin spot ETFs has now turned into meaningful bitcoin price appreciation,” he noted in a communication to clients.

Worthington emphasized the correlation between bitcoin appreciation and the increased flows into bitcoin ETFs, which has led to the surge in bitcoin prices and the subsequent effect on other tokens. He stated, “Given the acceleration in recent days of flows into bitcoin ETFs and the significant price appreciation of bitcoin and now ethereum, we are returning to a Neutral rating on Coinbase (COIN) as we see the higher cryptocurrency prices not only sustaining but improving activity levels and Coinbase’s earnings power as we look to 1Q24.”

The Neutral rating aligns with the SA Quant rating, the average SA Analyst rating, and the average Wall Street rating, signaling a consensus regarding Coinbase’s potential amidst the current market dynamics.