Coinbase Faces Downgrades as Crypto Market Rout Intensifies
The cryptocurrency industry is facing a wave of bearish sentiment as major financial institutions revise their outlooks downward. Standard Chartered has significantly reduced its Bitcoin price target, while Monness, Crespi, Hardt & Co. has downgraded Coinbase Global Inc. to a sell rating, citing concerns about the sustainability of any recovery in digital assets.
Institutional Pessimism Grows
Standard Chartered lowered its year-end 2026 Bitcoin forecast to $100,000 from $150,000, a substantial reduction from its previous $300,000 target just months earlier. The bank warned that Bitcoin could potentially drop to $50,000 before stabilizing, pointing to weakening price momentum and a challenging macroeconomic environment. Bitcoin fell as much as four percent to $65,079 on Thursday, continuing its downward trajectory.
"Bitcoin had a horrible year, and why do I think it happened?" said Michael Novogratz, head of Galaxy Digital, during a conference in New York. "I think we crossed $100,000. As you had the ETFs and the DATs coming in to buy Bitcoin, they were met with sellers. And once the buying stopped, it doesn't take a lot of buying to push it back the other direction."
Coinbase Downgraded to Sell
Monness, Crespi, Hardt & Co. downgraded Coinbase to sell, calling assumptions of a steady recovery "foolish + facile" given the typical length of crypto bear markets. The brokerage cut its price target by 68 percent to a street-low $120 and lowered revenue and earnings estimates through 2027. Coinbase shares fell for a third consecutive day, dropping about eight percent to $140.
This downgrade follows at least five other price target cuts in February by Wall Street analysts for the largest United States cryptocurrency exchange. Coinbase shares have tumbled almost 40 percent this year alone, reflecting growing institutional skepticism.
Market Conditions Deteriorate
Bitcoin has fallen more than 45 percent from its October peak near just over $126,000 and has repeatedly failed to sustain rebounds, indicating that speculative demand is thinning. The broader crypto market has shed nearly $2 trillion in value over the same period, creating significant headwinds for industry participants.
Coinbase, which will release fourth-quarter results after the close of equity trading, published a company-compiled list of consensus financial performance estimates earlier Thursday. Analysts surveyed by Bloomberg expect Coinbase to report fourth-quarter earnings of 86 cents per share, representing an over 80 percent year-over-year decline. However, Coinbase's own set of analyst consensus predicts even worse results, anticipating a loss of five cents per share.
Technical Issues Compound Problems
On Thursday, Coinbase reported that customers may be unable to buy, sell, or transfer assets on its website, with the company's team investigating the issue. "Your funds are safe," the company said in a post on social network X. A Coinbase representative pointed to this post when asked for comment on the outage, adding technical difficulties to the exchange's growing list of challenges.
Market Maturity Brings New Dynamics
The synchronized downgrades highlight a significant shift in tone across crypto's institutional ecosystem. Last year's rebound narrative hinged on renewed risk appetite and breakout momentum. Instead, rallies have stalled, buyers have hesitated, and analysts are dialing back expectations across the board.
"This selloff has been less extreme than previous ones and has not seen the collapse of any digital asset platforms," wrote Standard Chartered's Geoffrey Kendrick. This may signal a maturing market, but one where fading momentum, rather than fresh inflows, now sets the tone for price action.
One modest positive note comes from analysts at JPMorgan Chase & Co., who argue that the retail cohort has largely "ignored" the recent crypto selloff. The group's net positioning in IBIT, the largest spot-Bitcoin ETF, has remained roughly flat since mid-January, suggesting some stability among individual investors despite institutional pessimism.
