The stock of cryptocurrency exchange Coinbase Global (COIN) has been downgraded by U.S. investment bank Oppenheimer (OPY) over fears that investors are moving to the sidelines.

Owen Lau, a top five-star rated analyst at Oppenheimer, cut his share price target on Coinbase’s stock to $279 from $388, saying he expects trading by retail investors to remain weak amid ongoing market uncertainty caused by U.S. President Donald Trump's import tariffs and trade wars.

U.S. investment bank Oppenheimer has downgraded its rating on the stock of cryptocurrency exchange Coinbase Global (NASDAQ:COIN) over concerns about investors pulling back from crypto.

Owen Lau, a top five-star rated analyst at Oppenheimer, cut his share price target on Coinbase’s stock to $279 from $388.

Lau expects trading activity by retail investors to remain weak in the coming months amid ongoing market uncertainty caused by U.S. President Donald Trump’s threat of import tariffs and potential trade wars.

The investment bank also reduced its full-year 2024 trading volume forecast by 19% to $1.3 trillion as investor appetite for risk lessens. Additionally, Oppenheimer lowered its 2025 and 2026 forecasts for Coinbase’s revenue and earnings.

Crypto Signals

Beyond the tariff issues, Lau noted that investors and the markets haven’t fully embraced the pro-crypto signals coming out of the White House, with many people remaining skeptical of the Trump administration’s promises related to digital assets.

The downgrade from Oppenheimer comes as Coinbase’s stock has slid 30% in 2024. The decline in COIN stock coincides with a downturn in the cryptocurrency market, specifically Bitcoin (BTC). The largest cryptocurrency by market capitalization has seen its price hover around $85,000 in recent times.

Bitcoin's price has slid from an all-time high of $109,000, which was attained in January of the current year.

Despite the bleak outlook for Coinbase and cryptocurrency exchanges in general, Oppenheimer still maintains a Buy-equivalent outperform rating on the stock.

The main reason to remain bullish on COIN stock is the company’s market share, which continues to grow. Currently, Coinbase commands 69% of U.S. spot crypto trading volume and continues to steal share from rival Robinhood Markets (NASDAQ:HOOD).

Coinbase Stock: Key Levels to Watch

The stock of Coinbase Global has a consensus Moderate Buy rating among 21 Wall Street analysts. That rating is based on 12 Buy and nine Hold recommendations issued in the past three months. The average COIN price target of $290.90 implies 69.01% upside from current levels.

Coinbase shares closed Friday down 0.8% for the week.