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

Coinbase’s price target has been lowered by BofA as analysts warn of growing competition and fee pressure.

BofA Securities has lowered its price target for Coinbase Global Inc. to $311 from $363 while keeping a hold rating on the stock.

Analyst Mark McLaughlin CFA from Bank of America Securities said the move follows Coinbase’s strong earnings report, driven by a favorable crypto market and increased on-chain activity, but noted concerns about how long that momentum will last, TipRanks reports

The analyst noted that growing competition could push fees down, which could potentially hurt Coinbase’s short-term profits.

McLaughlin also pointed out that while the U.S. Securities and Exchange Commission has dropped its lawsuit against Coinbase, risks still remain. In 2023, the SEC accused Coinbase of operating an unregistered securities exchange and offering unregistered securities.

The case against Coinbase was one of the commission’s biggest crypto-related enforcement actions under former chair Gary Gensler.

The analyst notes that the exchange still relies heavily on transaction revenue, and traditional financial institutions entering the space could bring new competition. Following the price target cut, Coinbase shares fell 5.46% in after-hours trading to $215.85, according to data from Google Finance.

For Coinbase, the adjustment also comes as the crypto market faces turbulence, with $1.49 billion in liquidations over the past 24 hours, per data from CoinGlass. Bitcoin has dropped below $89,000, its lowest level since Q4 2024. Analysts at Matrixport warn that the decline could continue, especially with low trading activity limiting demand for dip-buying.

As crypto.news reported earlier, analysts at Spot On Chain also warn that Ethereum “could be heading for its worst February,” as macroeconomic uncertainty, including new tariffs from the Trump administration “adds to the pressure.”