PANews reported on February 6th that, according to CoinDesk, Citi has lowered its price target for cryptocurrency exchange Coinbase from $505 to $400, a decrease of approximately 20%, primarily due to weak trading volume, slowing institutional activity, and uncertainty surrounding the progress of US cryptocurrency legislation. The bank also lowered its net revenue forecast for Coinbase's fourth quarter of 2025 by approximately 10% to $1.69 billion, and projects a GAAP loss of $2.64 per share for the quarter, partly attributed to its cryptocurrency holdings and a write-down of its stake in Circle.
Despite lowering its target price, Citigroup maintains its "Buy/High Risk" rating on Coinbase, viewing it as an industry leader and a beneficiary of eventual crypto regulatory reform. The bank notes that legislative progress, such as the Clarity Act, remains a key catalyst for the share price recovery, but currently expects Senate negotiations on the market structure bill to continue beyond 2026. Coinbase's share price has fallen approximately 65% from its all-time high, but rebounded slightly by 6% in pre-market trading on the 6th.
