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COIN Stock Sinks To Over 2-Year Low As Bitcoin Sinks Below $77K, Wall Street Cuts Price Targets
Coinbase shares fell over 13% to a more than two-year low after third-quarter results beat earnings estimates but missed revenue expectations. Bitcoin dropped as much as 5.5% to around $77,000, and analysts including Needham, Rosenblatt, JPMorgan and Barclays cut Coinbase price targets.
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What happened
Coinbase shares fell over 13% to a more than two-year low after third-quarter results beat earnings estimates but missed revenue expectations. Bitcoin dropped as much as 5.5% to around $77,000, and analysts including Needham, Rosenblatt, JPMorgan and Barclays cut Coinbase price targets.
Confirmed
Global impact / market context
Coinbase earns much of its money from crypto trading activity, so falling Bitcoin prices and quieter trading can reduce revenue while costs keep rising. Lower analyst price targets signal Wall Street expects less profit ahead, which can pressure the stock further and make investors more cautious.
Analyst inference
Bitcoin's slide below $77,000 and bearish retail sentiment show investors are pulling back from risky crypto assets, which hits crypto-linked stocks like Coinbase hardest. Analysts noted weak spot trading, which means buying and selling of actual coins, a softer revenue outlook and rising costs as key concerns.
Analyst inference
What to watch
- Watch whether Bitcoin stays near $77,000, since Coinbase revenue depends heavily on crypto trading activity, and a deeper drop could further reduce trading volumes and exchange fees. Confirmed
- Watch Coinbase's next quarterly revenue and cost figures for signs that weak spot trading, meaning direct coin buying and selling, is offset by its expanding product lineup. Analyst inference
- Watch whether other Wall Street firms follow with further price target cuts or rating downgrades, which could add selling pressure on Coinbase shares and crypto-related stocks. Proposed
Affected assets
- BTC — Bitcoin