The downturn for cryptocurrency could lead to a retrenchment for Coinbase , according to JPMorgan. Analyst Kenneth Worthington downgraded Coinbase to neutral from overweight, saying in a note to clients that the slide in bitcoin and other digital assets will make it difficult for the exchange to make money. "While we continue to be believers in the cryptocurrency markets and blockchain technology, the extreme decline in the price of cryptocurrency markets in 2Q22 combined with Coinbase's ramp in investment would appear to not only make it challenging for it to generate a profit in the near future but also to meet its annual loss cap of $500mn of annual EBITDA ," Worthington wrote. The price of bitcoin briefly fell below $21,000 overnight and is down more than 60% from its record high late last year. Coinbase has fallen in tandem with crypto, dropping 79% year to date. The company has instituted a hiring freeze and rescinded job offers to control costs. In addition to the falling price of crypto hurting interest in the space, Coinbase is also losing market share to private crypto exchange FTX, JPMorgan said. The investment firm slashed its price target on Coinbase to $68 per share from $171. The new target is about 30% above where the stock closed on Monday, but JPMorgan warned of "the potential for more downside to the shares should cryptocurrency markets not stabilize and should management not announce more definite steps to reducing the cost base." — CNBC's Michael Bloom contributed to this report.