Citi Slashes Coinbase Price Target 41% Ahead of Q2 Earnings as Spot Volumes Dry Up
Wall Street is bracing for a weak second quarter from Coinbase as spot trading volumes reach two-year lows. Citigroup chopped its price target by 41% to $235 while maintaining a Buy rating, citing anemic transaction revenues across the crypto sector. Investors are looking past near-term earnings drag toward pending U.S. crypto market structure legislation for the next major catalyst.
Citigroup delivered a sharp jolt to Coinbase sentiment right before Q2 earnings, slashing its stock price target from $400 to $235. Analyst Peter Christiansen maintained a Buy rating but highlighted a brutal reality: spot trading volumes are bouncing along a two-year trough, capping Q2 transaction revenues at a projected $640 million.
The institutional desk is not alone in re-evaluating short-term expectations. Clear Street and Rosenblatt lowered their targets as well, bracing for total Q2 revenue to fall roughly 13% year-over-year. Options market defensive put buying reflects retail anxiety heading into the print, even as subscription services income and stablecoin interest from USDC supply a steady revenue backstop.
Despite the immediate volume slump, institutional accumulation remains remarkably resilient according to money flow metrics. Smart money is looking past quarterly fee compression, betting instead on the pending CLARITY Act to establish clear federal rules and unlock fresh institutional liquidity.