Coinbase Global Inc, the popular cryptocurrency exchange, has experienced a recent drop in stock prices, losing nearly 30% in value over the last few weeks. Despite this, famed investor Jim Cramer has stated that he does not consider this a buying opportunity.

Cramer’s disappointment in Coinbase stems from the lack of inflows the company received during recent bank failures.

He believed that the company, often referred to as the “JPMorgan of the business,” would have benefited from these bank failures, but this did not appear to be the case.

Last month, Coinbase received a Wells notice from the Securities and Exchange Commission for violating U.S. securities laws.

While this may have contributed to the recent drop in stock prices, it is important to note that year-to-date, Coinbase stock is still up 90%.

Additionally, Bank of America has issued a bearish outlook on Coinbase stock.

The bank’s analyst cited data from CoinGecko that showed transaction volumes for Coinbase remained roughly flat in the first quarter, missing consensus by $24 billion.

This is notable as transaction volume makes up a significant portion of Coinbase’s revenue.

The analyst also noted a 6.0% decline in app downloads, adding that the market cap for USDC, a stablecoin that Coinbase supports, has fallen 24% since the bank crisis began.

This could add risk to interest income estimates over the next few quarters.

It is important to consider these factors when making investment decisions regarding Coinbase stock.

While the company has seen significant growth year-to-date, recent developments may impact its future performance.