Shares of Coinbase, the largest publicly traded cryptocurrency exchange in the U.S., experienced a notable decline this week, reflecting the broader downturn in the cryptocurrency market. The drop in prices comes amidst concerns over insider selling and diminishing analyst forecasts, which have further rattled investor confidence.
Monness Crespi & Hardt made headlines by downgrading Coinbase’s stock rating from “buy” to “neutral,” citing potential downside risks associated with the weakening conditions of the cryptocurrency market. The firm set a new price target of $120, indicating a projected decline of more than 20% from current trading levels.
The downgrade follows Coinbase’s challenges in early 2026, coinciding with a general retreat in digital asset prices. On Thursday, the stock opened at approximately $153, representing a nearly 10% decrease from its intra-week highs, and a stark 34% fall since the beginning of the year.
The overall decline in Coinbase’s share price mirrors the cooling trend in the cryptocurrency market, which experienced a remarkable rally last year. Bitcoin, one of the most predominant cryptocurrencies, has dropped nearly 30% over the past month, while major altcoins have faced even more substantial losses. This downturn has been detrimental to trading volumes across the sector, pressuring Coinbase’s primary revenue source.
Analysts from various firms on Wall Street have begun reevaluating their predictions for Coinbase’s performance. A recent note from JPMorgan revealed a reduction in their price target for Coinbase by 27%, attributing this change to decreased spot trading volumes, a declining crypto market capitalization, and waning stablecoin activity, particularly involving USDC circulation. The report suggested that the multitude of smaller players in the market could significantly threaten Coinbase’s historic market share, which it had maintained as the dominant regulated entity in the public trading space.
Other financial advisories have also revised their expectations. Cantor Fitzgerald lowered its target price from $277 to $221 while retaining an overweight label, while Citi adjusted its target from $505 to $400, maintaining a buy rating, indicating a more optimistic long-term view despite short-term challenges.
Currently, analysts have assigned a consensus rating of “Moderate Buy” to Coinbase’s stock, with 19 recommending a buy, 12 suggesting a hold, and one advising a sell. The average analyst price target hovers around $332, suggesting that many still perceive potential growth from current levels.
Adding to the scrutiny surrounding Coinbase, CEO Brian Armstrong has been selling off portions of his shares. Research from VanEck reveals that Armstrong sold over 1.5 million shares between April 2025 and January 2026, with a value of approximately $545 million based on Bloomberg pricing data. The most significant sale occurred on June 25, when he sold 336,265 shares at approximately $355 each.
In a public response on social media platform X, Armstrong characterized the selling as a necessary move for diversification after dedicating over a decade of his wealth to a single company. He emphasized that his commitment to Coinbase remains strong, asserting that he remains “super long” on the company and has utilized the proceeds to launch new ventures.
Analyst Mike Colonnese from H.C. Wainwright recently expressed concerns that Coinbase may report disappointing net revenue and adjusted EBITDA due to the prevailing low prices of digital assets, along with the potential for significant headline losses linked to its cryptocurrency holdings, including its stake in Circle. Despite these concerns, Colonnese maintained a buy rating, viewing any post-earnings weakness as a potential buying opportunity.
The cryptocurrency market’s turmoil continues as Bitcoin’s price has further declined, following a multi-month slide that has halved its value since its peak last October. Currently trading near $66,000, Bitcoin is approaching a critical zone after a sell-off that brought prices close to $60,000. Since around December 2025, Bitcoin has consistently followed a downward trend, falling from above $100,000, leading traders to question whether the market has finally reached a sustainable floor.
