Shares of cryptocurrency exchange Coinbase Global, Inc. COIN fell sharply in premarket trading on Tuesday.

The downside comes amid the lackluster sentiment relayed by the stock futures. The broader market will likely tread water after touching record highs in two successive sessions.

Coinbase’s shares could also be reacting the sell-off in the cryptocurrency market, especially after the SEC greenlighted the spot Bitcoin BTC/USD exchange-traded fund. Over the past 24 hours, Bitcoin has shed about 4.50% and traded below $39,000.

Also, JPMorgan analysts downgraded Coinbase shares to Underweight from Neutral, while maintaining the $80 price target, excerpts from the note shared on X showed.

Benzinga