JPMorgan cuts earnings forecasts for Circle and Coinbase

What happened

JPMorgan Chase announced that it is lowering its earnings forecasts for both Circle, the issuer of the USDC stablecoin, and Coinbase, the cryptocurrency exchange, reflecting reduced profit expectations.

Confirmed

Global impact / market context

The downgrade signals that major financial institutions see weaker revenue prospects for key crypto players, which could lower investor confidence in the sector, tighten financing, and pressure valuations of related digital assets.

Analyst inference

Crypto markets have faced heightened regulatory scrutiny and volatility, leading banks and analysts to reassess growth assumptions for stablecoin issuers and exchanges, creating a more cautious investment environment.

Analyst inference

What to watch

1. Circle's ability to maintain USDC demand as businesses and traders seek stablecoins for payments and DeFi activities. Analyst inference
2. Coinbase's user growth and trading volume trends, which drive its core revenue and affect future earnings outlooks. Analyst inference
3. JPMorgan's subsequent guidance for crypto‑related clients, indicating whether the bank will further adjust expectations for the sector. Analyst inference

Affected assets

• USDC — USD Coin
• HYPE — Hyperliquid

Evidence

• thestreet.com