Coinbase shares experienced a decrease, declining by 5.4% after the Bank of America decreased its target price by 14%.
Bank of America’s experts are turning somewhat wary of Coinbase, mentioning increased rivalry and possible pressure on fees.
Analyst Mark McLaughlin at Bank of America Securities stated that this choice arrives even after Coinbase reported robust profits, improved by a positive crypto market and more action on the blockchain. Nevertheless, there are anxieties about how long this can endure.
McLaughlin also highlighted that even though the SEC dismissed its legal action against Coinbase Supports Celo’s Shift to Ethereum Layer-2, dangers are still existing. You might remember that in 2023, the SEC blamed Coinbase of operating an unauthorized securities exchange and providing unregistered securities.
The expert is concerned that rising competition could push fees downward, which would damage Coinbase’s earnings in the near term.
The legal action against Coinbase was among the biggest crypto-related enforcement actions the SEC took under its prior chairman, Gary Gensler.
Bank of America Securities reduced its target price for Coinbase Global Inc. from $363 to $311 but is still maintaining a “hold” rating on the stock.
The expert noted that the exchange still depends greatly on transaction revenue, and the entry of traditional financial organizations into the crypto space could bring new rivalry. Following the target price cut, Coinbase shares decreased 5.46% to $215.85 in after-hours trading, according to Google Finance.
This adjustment arrives at a difficult period for the crypto market, with $1.49 billion liquidated in the last 24 hours, according to CoinGlass. Bitcoin has fallen under $89,000, reaching its lowest level since the fourth quarter of 2024. Experts at Matrixport are cautioning that the downturn could proceed, particularly since low trading activity is limiting demand to purchase the dip.
In essence, the crypto market is encountering some obstacles.
As indicated by prior news stories, Spot On Chain specialists have additionally cautioned that Ethereum “may be confronting its most dire February,” because of macroeconomic vulnerabilities, including new duties from the Trump organization that “worsen the strain.”
