Coinbase (NASDAQ:COIN) received an upgrade from JPMorgan on Thursday, shifting from Underweight to Neutral, with the bank attributing the change to the surge in Bitcoin prices. The analysts at JPMorgan maintained an $80 price target for the stock.

The bank cited the rise in the Bitcoin price as a factor that benefits both the cryptocurrency market and Coinbase’s earnings potential. Previously, JPMorgan had expressed concerns about the optimism surrounding Bitcoin, driven by expectations for new money entering the cryptocurrency market through recently approved and launched U.S. spot Bitcoin ETFs.

However, the analysts acknowledged that what started as a sell-the-news event with the launch of U.S. Bitcoin spot ETFs has evolved into substantial Bitcoin price appreciation. They believe this appreciation is contributing to increased flows into Bitcoin ETFs and, in turn, driving higher Bitcoin prices, subsequently lifting other tokens as well.

With the recent influx of funds into Bitcoin ETFs and the notable price appreciation of both Bitcoin and Ethereum, JPMorgan anticipates that higher cryptocurrency prices will not only be sustained but will also enhance activity levels and Coinbase’s earnings potential.