Coinbase Cuts Trading Volume Forecast by 19% Amid Tariff Uncertainties
Coinbase (COIN) faces a challenging outlook as President Trump's fluctuating tariff threats impact retail crypto activity, according to Oppenheimer analysts. Key points include:
- Oppenheimer cut its full-year trading volume forecast by 19% to $1.3 trillion.
- The first-quarter estimate was lowered by 13% to $380 billion due to reduced risk appetite.
- Despite positive signals from U.S. leadership towards crypto, the market remains cautious.
- Coinbase stock has declined 30% this year, underperforming both bitcoin (BTC) and the S&P 500, which have dropped 10% and 8%, respectively.
- Oppenheimer reduced its 2025 and 2026 revenue and earnings forecasts and lowered the price target to $279 from $388.
- Coinbase held a 69% share of U.S. spot crypto trading volume in February.
- Analysts maintain an outperform rating, noting long-term potential if tariff issues are resolved.
Market conditions will significantly influence Coinbase's ability to maintain its competitive edge.