Coinbase Gets a 'Buy' Rating From Bernstein as Trump's Crypto Policies Take Shape

Coinbase Gets a 'Buy' Rating From Bernstein as Trump's Crypto Policies Take Shape

  • 18.03.2025 20:05
  • decrypt.co
  • Keywords: danger, danger

Bernstein upgraded Coinbase stock with a $310 price target, predicting a 69% upside due to Trump's crypto-friendly policies. The firm highlighted Coinbase's dominance in the U.S. market and expects growth driven by favorable regulations and increased digital asset adoption.

Coinbase ReportsCOINsentiment_satisfied
open_in_newOriginal article

Estimated market influence

Coinbase

Coinbase

Positivesentiment_satisfied
Analyst rating: Buy

Bernstein upgraded Coinbase's rating to 'Buy' with a price target of $310, citing Trump's crypto-friendly policies and its dominant market share in the U.S.

Bernstein

Positivesentiment_satisfied
Analyst rating: N/A

Analysts at Bernstein upgraded Coinbase's stock rating, highlighting the potential growth driven by favorable crypto policies under Trump's administration.

Context

Analysis of Coinbase's 'Buy' Rating and Market Implications

Key Facts and Data Points

  • Target Price: Bernstein set a target price of $310 for Coinbase stock, representing a 69% upside potential.
  • Current Stock Price: Trading at approximately $182 per share as of the latest update.
  • Market Share: Coinbase holds 66% of the U.S. cryptocurrency exchange market share.
  • Analyst Sentiment: According to FactSet, 41% of analysts covering Coinbase have a "Buy" or "Overweight" rating.

Market Trends and Business Impact

  • Regulatory Environment: Bernstein highlights "strong regulatory tailwinds," citing the Trump administration's goal to make the U.S. the "crypto capital of the world."
  • Digital Assets Framework: The report mentions the creation of a digital assets framework, including the establishment of a Bitcoin strategic reserve by the administration.

Competitive Dynamics

  • Competition Concerns: Bernstein notes rising competition and fee pressure but expects these challenges to be offset by the "reshoring" of global crypto markets back to the U.S.
  • Revenue Growth: Coinbase reported a 130% surge in revenues during its 2024 fourth quarter, significantly outperforming analyst expectations.

Strategic Considerations

  • Transaction Revenue: Transaction revenue more than doubled year-over-year in the same period.
  • Bitcoin Price and Market Sentiment: Bitcoin prices were holding steady at around $83,000 ahead of the Federal Reserve's interest rate decision. Trading volume dropped to $22 billion over 24 hours, down from $49 billion previously.

Long-Term Effects and Regulatory Impacts

  • U.S. Crypto Hub: The report suggests that supportive U.S. policies could position the country as a global crypto hub, further strengthening Coinbase's dominant market position.
  • Industry Mainstreaming: Bernstein predicts that favorable regulations will drive the cryptocurrency industry into the mainstream of American finance.

Conclusion

Bernstein's "Buy" rating reflects confidence in Coinbase's ability to capitalize on favorable regulatory trends and its strong market position in the U.S. While competition and fee pressure remain concerns, the broader shift toward a crypto-friendly environment is expected to offset these challenges.