The cryptocurrency market has been caught in a storm. Bitcoin (BTCUSD), XRP (XRPUSD), and Solana (SOLUSD) have all taken heavy hits, rattled by a whirlwind of geopolitical tensions, tariffs, and regulatory shifts. President Donald Trump’s aggressive tariffs, targeting key trading partners like Mexico, Canada, and China, have sent shockwaves through global markets, triggering a sharp selloff. Trump’s Strategic Crypto Reserve has become another source of volatility.
Yet, amid the uncertainty, a powerful rebound narrative is taking shape.
Coinbase Global (COIN), a top U.S. crypto exchange, anchors digital asset adoption with trading, staking, and institutional services. Despite a 27% drop over the past month, Rosenblatt Securities sees opportunity. Analyst Chris Brendler calls COIN the “clear blue chip” of crypto, set to benefit from regulatory clarity and rising institutional demand.
With bullish signals flashing, is it time to buy the dip like the analyst suggests or wait for clarity? Let’s break it down.
About Coinbase Stock
Delaware-based Coinbase Global (COIN), founded in 2012, is a powerhouse in crypto trading with a $46 billion market capitalization. As the second-largest exchange, it thrives on volatility, catering to retail and institutional traders alike.
Shares of Coinbase hit a 52-week high of $349.75 in December, fueled by Bitcoin’s surge and then President-elect Trump’s pro-crypto stance. Though now 45.2% below that peak, COIN still boasts a 13% six-month gain.
Market jitters and S&P 500 Index ($SPX) exclusion dampened investor sentiment, which led to COIN's 17.6% drop on Monday, March 10.
However, with Rosenblatt pounding the table on COIN stock, some investors are betting on a rebound narrative.
Coinbase commands a premium valuation, trading at 25.8 times forward earnings and 7.31 times sales - reflecting its heavyweight status in the crypto space. As adoption accelerates and revenue streams diversify, investors see COIN not just as a stock, but as a cornerstone of digital finance.
Coinbase Tops Q4 Estimates
On Feb. 13, Coinbase delivered its Q4 earnings results, pulling in $2.3 billion in revenue, up 138.2% year-over-year, edging past Wall Street’s targets. Bitcoin’s post-election rally past $100,000 fueled a crypto surge, sending EPS soaring 350% to $4.68.
Subscription and services revenue jumped 71% annually to $641 million, while transaction revenue skyrocketed 194% to $1.6 billion. Trading volume hit $439 billion, with consumer trading soaring 224.1% to a record $94 billion. Crushing the U.S. spot market’s 126% rise, Coinbase raked in $1.3 billion from consumer transactions, up 179% sequentially. Institutional trading doubled to $345 billion, with revenue surging 156% as top-tier clients locked into its prime offerings.
Coinbase delivered a powerhouse quarter, with net income skyrocketing 372% to $1.3 billion and cash reserves, as of Dec. 31, 2024, swelling to $9.3 billion. Operating cash flow doubled to $2.5 billion despite its $4.2 billion in long-term debt. Yet, a 9% sequential dip in stablecoin transaction fees raised eyebrows.
Looking to fiscal Q1 2025, management projects subscription and services revenue between $685 million and $765 million.
What Do Analysts Expect for Coinbase Stock?
Coinbase is riding high on the crypto wave, and Rosenblatt’s Chris Brendler sees no signs of slowing down. Initiating COIN with a “Buy” rating along with a $305 target - 61% upside - Brendler views the stock’s recent dip as a prime entry point. With regulatory clarity improving, the new administration leaning pro-crypto, the SEC lawsuit in the rearview, and institutional adoption surging, Coinbase looks set for long-term leadership.
Beyond trading, Coinbase is proving resilient - non-trading revenue soaring by double digits in Q4. Brendler believes this strength could push Coinbase past 2025 and 2026 forecasts, solidifying its dominance.
Wall Street leans bullish on COIN, with the stock having a “Moderate Buy” consensus rating overall. Out of the 23 analysts in coverage, eight recommend a “Strong Buy,” one advises a “Moderate Buy,” 13 play it safe with a “Hold,” and the remaining one bets against it with a “Strong Sell.”
COIN’s mean price target of $318.90 implies the stock has upside potential of 69% from the current price levels. The Street-high target of $475 suggests the stock could rally as much as 151%.
