PiCK

Hit hard by the bear market? Citi sharply cuts Coinbase price target

Source

Uk Jin

Summary

Citi said it lowered Coinbase’s price target from $505 to $400, citing shrinking trading volumes, a slowdown in institutional investors’ activity, and the possibility of delays in US crypto legislation.
Citi said it cut its forecast for Coinbase’s Q4 2025 net revenue by about 10% to $1.69 billion, and expects roughly $2.3 billion in valuation losses and an EPS loss of -$2.64, reflecting declines in the value of crypto assets and its stake in Circle.
Still, Citi maintained its investment rating on Coinbase at “Buy · High Risk,” saying progress on US regulatory frameworks and discussions over a US market structure bill could be key catalysts.

Forecast Trend Report by Period

US investment bank Citigroup has sharply lowered its price target for cryptocurrency exchange Coinbase. The move comes as risk-off sentiment has gripped the broader crypto market, sending trading volumes plunging.

According to CoinDesk on the 6th (Korea time), Citi said in a report sent to investors that day that it cut its Coinbase price target to $400 from $505.

Citi cited declining trading volumes, slowing activity by institutional investors, and the possibility of delays in crypto-related legislation in the US as factors behind the cut.

Coinbase shares are down about 65% from last year’s peak. The previous session’s close was $146, and the stock was up about 6% in premarket trading.

Citi also lowered its earnings outlook for Coinbase. It reduced its forecast for net revenue in the fourth quarter of this year (Q4 2025) by about 10% to $1.69 billion, saying the figure is about 4% below the market consensus.

Citi further estimated that Coinbase would incur roughly $2.3 billion in valuation losses, reflecting declines in the value of its crypto holdings and its stake in stablecoin issuer Circle.

As a result, Citi expects Coinbase to post a loss, with EPS for Q4 this year projected at -$2.64.

Still, Citi maintained its investment rating on Coinbase at “Buy · High Risk,” citing its view that Coinbase could be the biggest beneficiary if US regulatory frameworks advance.

Citi said in particular that discussions over a US market structure bill could serve as a key catalyst, while noting that Senate negotiations could stretch beyond 2026.

Coinbase is set to report its Q4 2025 and full-year results on the 12th.