Time to Buy the Dip on COIN Stock? Here’s What Wall Street Thinks.

Coinbase (NASDAQ:COIN) is one of the biggest crypto exchanges. It has been on a significant rally over the past year as Bitcoin (BTC-USD) and many other cryptos have climbed. this company has benefited significantly from higher crypto trading volume.

However, it has started to decline markedly in the past week and is down 8.75% since January 31. Here’s what you need to know:

Trump’s Tariffs Sparked Market-Wide Risk-Off Sentiment

Trump’s 25% tariffs on Canada and Mexico, along with 10% tariffs on China have started a trade war. In turn, investors are dumping investments that are considered to be risky. This includes cryptos like BTC and assets linked to them. Coinbase is obviously one of them, so the stock has taken a hit.

Bitcoin is now down to $97,000, and the slightly lower trading volume could cause Coinbase’s financials to take a hit this quarter.

Also, the retaliatory tariffs from Canada and expected ones from China and Mexico could be met with counter-retaliation, as it included a clause that allows him to escalate tariffs further if retaliatory measures were imposed. This could mean even more selloffs down the line if the trade war gets worse.

What Wall Street Analysts Think

Wall Street analysts have a consensus price target of $315 on the stock. This implies 11.35% upside potential from here. However, most ratings are still “Hold.” Q4 2024 results are about to be posted soon and with Q3’s report missing EPS by $0.28 cents, not many analysts are optimistic.

Wall Street largely views this stock as a high-beta play on crypto adoption. The upside here is tied to the broader crypto industry, so the price action is quite unpredictable in the short term.

Regardless, many think that Trump could also help the stock. If a national Bitcoin reserve is announced, that could trigger another rally.

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