The post Coinbase Crypto Momentum Stalls, Valuation Stretches: Cut to Sell at Compass Point appeared on BitcoinEthereumNews.com.

Coinbase (COIN) has been downgraded to a sell rating by Compass Point, which also cut its year-end price target from $330 to $248, citing weaker-than-expected earnings and fading interest in crypto equities as key risks. COIN is trading modestly higher on Monday at $316 following last week’s earnings-related 18% plunge. “While we remain constructive on the current crypto cycle, we expect a choppy 3Q alongside weak August/September seasonality and waning retail interest in crypto treasury stocks,” analysts wrote. “We also expect increasing stablecoin competition to weigh on both COIN and CRCL’s valuations in 2H25.” Coinbase missed expectations for second-quarter results, and early third-quarter trends aren’t looking much better. Subscription and services revenue, a metric investors see as a reliable income stream, came in 8% below Wall Street estimates in Q2. The midpoint of the company’s Q3 forecast is also 5% below consensus. “‘Other S&S revenue’ was a key contributor to COIN’s 2Q/3Q miss,” Compass Point wrote, pointing to a sharp quarter-over-quarter decline in Coinbase One and other tech-related fees — segments many investors had hoped would drive long-term growth. Compass Point’s downgrade comes as the crypto market loses momentum despite broader stock markets recovering after last week’s dip. Bitcoin (BTC) and ethereum (ETH) have struggled to gain ground, and retail investors appear to be pulling back from “TreasuryCo” stocks — companies holding large amounts of BTC or other cryptos on their balance sheets. This includes Coinbase and Strategy (MSTR), the latter of which recently slowed its bitcoin buying pace and shifted toward raising funds through preferred equity rather than stock offerings. The analysts flagged that elevated leverage in crypto markets poses a further risk. July’s rally was fueled by aggressive trading, but with open interest rebounding after a short dip in liquidations, a deeper sell-off could trigger another round of…

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Filed under: News - @ August 4, 2025 8:25 pm