Bank Of America Upgrades Coinbase to ’Buy’ Rating: The Bullish Breakdown You Can’t Miss
Wall Street's crypto cold war just thawed—dramatically. Bank of America, a titan of traditional finance, just slapped a 'Buy' rating on Coinbase. It's a signal flare for the industry, suggesting the exchange isn't just surviving the regulatory gauntlet—it's poised to thrive.
From Skeptic to Believer
The upgrade isn't a minor tweak; it's a full-scale reassessment. Analysts pointed to Coinbase's fortified market position and its evolution beyond a simple trading platform. The narrative is shifting from 'crypto broker' to 'integrated financial ecosystem.'
The Institutional Engine Starts
Forget the retail frenzy of cycles past. The real growth story now hinges on institutional adoption. Coinbase's suite of custody, staking, and prime services is built for this exact moment—when big money finally gets serious about on-chain assets. The upgrade suggests BofA sees the pipes are ready.
Regulation: From Headwind to Tailwind?
Every crypto firm talks about regulatory clarity as a future promise. This rating action implies someone believes Coinbase is positioned to be a primary beneficiary when—not if—the rulebook gets written. It's a bet on the company turning compliance from a cost center into a competitive moat.
The Bottom Line for Your Portfolio
When a legacy bank tells its clients to buy a crypto-native stock, pay attention. It's a proxy bet on the entire digital asset class gaining mainstream financial legitimacy. Of course, in finance, a 'Buy' rating today is just a polite way of saying 'Sell' tomorrow—but for now, the old guard is placing its chips.
Bank Of America Upgrades Coinbase’s Prospects
Research analyst Craig Siegenthaler from Bank of America highlighted several factors contributing to this optimistic outlook. He noted that Coinbase’s ongoing product expansion, strategic pivots, and an appealing valuation create a solid foundation for the company’s performance in the coming years.
Siegenthaler specifically attributed the bank’s revised stance on Coinbase’s stock, COIN, to an acceleration in product velocity and a pullback in the stock price observed during the second half of 2025.
Recent market data shows that the cryptocurrency exchange’s shares have fallen approximately 40% from their peaks of $445 reached back in July of last year, making this a more attractive entry point for investors.
The exchange is also diversifying its offerings, looking beyond cryptocurrency to include stocks, exchange-traded funds (ETFs), and prediction markets. According to Siegenthaler, this expansion brings Coinbase closer to realizing its vision of becoming the “everything exchange.”
Price Target Of $340 For COIN
A significant factor in Bank of America’s bullish assessment is the crypto firm’s Base, a Layer-2 (L2) network built on the ethereum (ETH) blockchain. The analyst views Base as a pivotal step in Coinbase’s evolution from merely a trading platform to a comprehensive crypto infrastructure provider.
The anticipated launch of a native token in the future could serve as a major catalyst, potentially raising billions and further enhancing the platform’s capabilities.
Another initiative that piqued Bank of America’s interest is Coinbase Tokenize. This feature integrates issuance, custody, compliance, and access to the exchange’s client base, positioning the company as a leader in the tokenization market.
From a valuation perspective, Bank of America observed that Coinbase’s price-to-earnings (P/E) ratio has significantly compressed since mid-2024, improving the stock’s risk-reward profile.
This adjustment in valuation, coupled with a more favorable regulatory environment expected under President Donald Trump, could provide “sizable tailwinds” for the crypto firm as the industry matures.
Looking ahead, Bank of America envisions Coinbase solidifying its dominant role across trading, infrastructure, and tokenization as the next phase of cryptocurrency adoption unfolds.
The bank has reiterated its price target of $340 for Coinbase’s stock, reflecting its confidence in the company’s long-term prospects. This suggests that the company’s stock price could potentially recover by 38% in the near-term if materializes.
Featured image from Shutterstock, chart from TradingView.com
