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Coinbase Shares Could Fall All the Way Back to $60 – Analyst Says

coinbase stock could drop to $60 analysts say
  • Piper Sandler downgraded Coinbase Global Inc on Wednesday.
  • Analyst Patrick Moley cited regulatory uncertainty for a dovish view.
  • Coinbase stock is up nearly 60% over the past thirty days.

Coinbase Global Inc has been an absolute delight for shareholders over the past thirty days but a sharp decline is likely to move forward, according to a Piper Sandler analyst.

Avoid Coinbase stock due to regulatory uncertainty

On Wednesday, Patrick Moley downgraded the crypto exchange to “neutral” and also lowered his price target to $60, signaling a 25% downside from here.

The analyst became a dove mainly because the US Securities and Exchange Commission sued the Nasdaq-listed company last month for operating as an unregistered exchange (read more).

In a research note today, he attributed the recent rise in Coinbase shares to prominent asset managers filing for a Spot Bitcoin ETF and the resulting upside for crypto prices but said:

Rising crypto prices have not translated into increased trading volumes for COIN in recent quarters and the timing of a Spot Bitcoin ETF approval is anyone’s guess.

Coinbase Global will report a weak second quarter

Moley expects the crypto firm to report monthly transaction user and trading volumes at two-year lows in its second financial quarter.

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The Piper Sandler analyst agreed that Coinbase Global will eventually emerge as a major player in the crypto space but said:

We would like to see more progress on the regulatory front and a convincing turnaround in the underlying fundamentals of the business before we become more bullish on Coinbase stock.

Despite the regulatory crackdown, Coinbase increased its market share last month to a new high since January 2023, according to data from Kaiko – a digital asset data provider.

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