Coinbase Global, Inc. (COIN) shares are experiencing a decline on Friday, influenced by a confluence of factors. The price of Bitcoin (BTC/USD) has dropped below the $54,000 mark, falling by 4.14%, putting downward pressure on Coinbase shares. Adding to the downward pressure, Barclays analyst Benjamin Budish has upgraded Coinbase from Underweight to Equal-Weight, but simultaneously lowered the price target from $206 to $169. This move comes amidst broader market weakness following the release of the August jobs report.
Despite the current market sentiment, Coinbase’s Chief Legal Officer, Paul Grewal, remains optimistic about the future of cryptocurrency legislation. Grewal believes that a pro-cryptocurrency Congress will emerge after the upcoming election, citing progress on the FIT21 bill, also known as the “crypto bill.”
When considering the potential for Coinbase Global to trade higher from current levels, it’s important to consider analyst forecasts. Wall Street analysts hold an average 12-month price target of $261.69 for Coinbase Global. The highest target currently stands at $345, while the lowest target sits at $169. Out of all analysts covering Coinbase, 8 have positive ratings, 3 have neutral ratings, and 2 have negative ratings.
While the average analyst price target suggests potential upside for the stock, it’s important to remember that stock prices are inherently volatile. The average stock market return is around 10% per year, and Coinbase is currently down 2.79% year-to-date.
As of Friday, Coinbase Global shares are down 7.42% at $147.85.
