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“Coinbase Faces Analyst Downgrades and Lowest Trading Volume in Two Years”

Analysts Downgrade Coinbase Ratings and Expect Trading Volume to Hit Two-Year Low

The renowned investment bank Piper Sandler has rated Coinbase stock (COIN) neutral from overweight as it expects second-quarter trading volume to be the lowest in the past two years.

While Coinbase stock has been rallying post the BlackRock Exchange-Traded Fund (ETF) filings, several analysts are concerned about its future revenue.

Piper Sandler Downgrades Coinbase Stock Ratings 

Piper Sandler downgraded Coinbase’s rating from overweight to neutral and predicted a fall of over 20% from the current market price. As of writing, the stock trades at around $77, while the investment bank’s latest price target is $60.

Piper Sandler’s analyst Patrick Moley argues that the uncertainty around Coinbase makes it difficult to forecast future revenue. This is because the United States, one of the largest markets for Coinbase, has been under a strict crypto crackdown this year.

Moreover, the Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase, accusing it of acting as an unregistered broker.

Lowest Trading Volume in Two Years?

In 2023, the flagship cryptocurrency Bitcoin has rallied by over 80%. Simultaneously Coinbase stock is up by over 140%. The spot Bitcoin ETF filings by large asset managers such as BlackRock have catalyzed the rally.

But Moley is concerned about the exchange’s trading volume. He explains:

“Rising crypto prices have not translated to increased trading volumes for Coinbase in recent quarters and the timing of a spot Bitcoin ETF approval is anyone’s guess.”

That said, Moley expects Coinbase’s second-quarter trading volumes to be the lowest in the last two years. Last week, BeInCrypto reported that Berenberg Capital predicted a 50% drop in Coinbase stock to around $39 due to various factors, including regulatory uncertainty.

COIN is approaching major resistance at around $85. The chart below shows that the price-action of COIN has mostly been sideways from $85 to $50 in 2023.


With Coinbase’s stock rating being downgraded to neutral by Piper Sandler and the expectation of the lowest trading volume in two years, there are growing concerns about the future revenue prospects for Coinbase. The uncertain regulatory environment in the United States, coupled with the SEC’s lawsuit against the exchange, adds to the uncertainty surrounding Coinbase’s future.

Investors will be closely monitoring the trading volume numbers for the second quarter of the year to assess the impact on Coinbase stock. Additionally, the approval of a spot Bitcoin ETF remains uncertain, further adding to the unpredictability of Coinbase’s performance.

As the cryptocurrency market continues to evolve, it is crucial for investors to stay updated on the latest developments and regulatory changes that can influence the performance of cryptocurrency exchanges like Coinbase.


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