Coinbase’s shares drop 5.4% as BofA cuts price target by 14%

The objective of Coinbase courses has been reduced by the Bofa while analysts warn against increasing competition and pressure pressure.

Bofa titles has lowered its price goal to Coinbase Global Inc. At $ 311, against $ 363 while maintaining a storage note on the action.

Analyst Mark McLaughlin CFA by Bank of America Securities said that this decision follows Solid earnings reportmotivated by a favorable crypto market and increased activity on the channel, but noted concerns about the duration of this momentum, Tipranks reports

The analyst noted that growing competition could lower the costs, which could potentially affect the short -term benefits of Coinbase.

McLaughlin also stressed that while the American Commission for Securities and Exchange fell His trial against Coinbase, risks still remain. In 2023, the SEC accused Coinbase of exploitation of an unscathed securities exchange and of offering unregistered securities.

The case against Coinbase was one of the biggest measures to apply the application of the commission crypto under former president Gary Gensler.

The analyst notes that the exchange is still strongly based on transaction income, and that traditional financial institutions in space could bring new competition. After the drop in price target, Coinbase shares dropped 5.46% in traffic after hours at $ 215.85, according to Google Finance data.

For Coinbase, the adjustment is also on the cryptography market Faced with turbulenceWith $ 1.49 billion in liquidations in the last 24 hours, according to Coringlass data. Bitcoin fell below $ 89,000, its lowest level from the fourth quarter of 2024. Matrixport analysts warn that the decline could continue, in particular with a low negotiation activity limiting the demand for blessing of skips .

As Crypto.News reported it earlier, Spot analysts On Chain also warn that Ethereum “could go to its worse February”, as a macroeconomic uncertainty, including new tariffs from the Trump administration ” Add to pressure “.