Wall Street Heavyweights Issue Death Sentence for Coinbase, Slash Price Target to $190

▲ Coinbase / ChatGPT-generated image

Wall Street heavyweight investment analysts have successively downgraded their ratings on Coinbase, the largest cryptocurrency exchange in the United States, sounding a massive bearish alarm across the market.

According to crypto-focused outlet U.Today on February 12 (local time), Monness, Crespi, Hardt delivered a dramatic downgrade on Coinbase, cutting its rating two notches from buy to sell. The analysts warned that a prolonged downturn in the digital asset market would deal a severe blow to Coinbase’s revenue structure. They slashed forecasts for the exchange’s revenue, operating income before depreciation and amortization, and earnings per share, projecting that the current market slump could persist for at least a year.

The erosion of Wall Street’s confidence is rooted in a lack of liquidity and shrinking trading activity in the crypto market. Monness, Crespi, Hardt assessed that despite the sharp decline in Coinbase’s share price, the stock is still not undervalued. They argued that the ongoing downtrend has not yet been fully priced in. JPMorgan also lowered its price target for Coinbase to $290, while Compass Point cut its target from $230 to $190, reinforcing the market’s negative outlook.

As concerns over deteriorating performance intensify and the stock price plunges, the personal wealth of Coinbase’s management has also visibly declined. CEO Brian Armstrong was pushed out of the world’s top 500 richest individuals in the wake of the stock’s collapse. This underscores that the exchange’s crisis extends beyond financial figures, shaking its external standing as well. Market participants believe that without a rebound in the prices of major assets such as Bitcoin (BTC), an independent recovery in Coinbase’s share price will be difficult to achieve.

The broader downturn in the digital asset market is directly compressing trading fee revenue, the exchange’s primary source of income. Wall Street experts noted that although Coinbase is attempting to expand across various ecosystems including Ethereum (ETH) and Solana (SOL), such efforts are insufficient to overcome macroeconomic uncertainty and regulatory pressure. As warnings grow that the market slump may last longer than expected, investors are either leaving exchanges to defend their assets or shifting toward more conservative portfolio strategies.

Coinbase is currently facing its most severe credibility crisis since going public, and Wall Street’s cold stance is expected to persist for the time being. Analysts maintain a pessimistic view that structural market changes and intensifying competition will hinder profitability recovery despite the exchange’s self-rescue efforts. Investors are closely monitoring the possibility of further rating adjustments by major financial institutions while cautiously preparing for continued downward pressure in the market.

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