The stock of %Cryptocurrency exchange %Coinbase Global (NASDAQ: $COIN) has been downgraded by U.S. investment bank Oppenheimer (NYSE: $OPY) over fears that crypto investors are moving to the sidelines.
Analyst Owen Lau at Oppenheimer cut his share price target on Coinbase’s stock to $279 U.S. from $388 U.S., saying they expect trading by retail investors to remain weak amid ongoing market uncertainty caused by U.S. President Donald Trump’s import tariffs and trade wars.
Specifically, Oppenheimer said that it expects full-year trading volumes on Coinbase Global’s crypto platform to decline 19% to $1.3 trillion U.S. as investor appetite for risk declines.
The investment bank also lowered its 2025 and 2026 forecasts for Coinbase’s revenue and earnings.
Beyond the current tariff drama, Oppenheimer said that investors and the market haven’t fully embraced the pro-crypto signals put out by the White House, with many people remaining skeptical of the Trump administration’s promises related to digital assets.
The downgrade comes as Coinbase’s stock has fallen 33% this year to trade at $172.21 U.S. per share.
Despite the poor near-term outlook for Coinbase, and cryptocurrency exchanges in general, Oppenheimer maintains a buy-equivalent “outperform” rating on the stock.
Analyst Lau says the main reason to remain somewhat bullish on COIN stock is the company’s market share.
Coinbase Global currently accounts for 69% of U.S. spot crypto trading volume and continues to take share from rival exchange %Robinhood Markets (NASDAQ: $HOOD).
The decline in Coinbase Global’s stock price comes as the price of %Bitcoin (CRYPTO: $BTC), the largest cryptocurrency by market capitalization, trades right around $85,000 U.S.
Bitcoin’s price has fallen from an all-time high of just over $109,000 U.S. reached in January of this year.
