Coinbase Faces Downgrade Amid Slowing Crypto Momentum and Weak Q2 Earnings

Compass Point has downgraded Coinbase to a sell rating, reducing its price target from $330 to $248, citing weaker-than-expected Q2 earnings and declining retail interest in crypto equities. Subscription revenues fell short of estimates by 8%, and early Q3 trends indicate ongoing challenges, particularly in Coinbase One and technology fee segments. This reassessment reflects broader concerns about slowing momentum in the cryptocurrency market.

Compass Point Downgrades Coinbase to Sell Amid Crypto Momentum Slowdown

Coinbase faces a sobering reassessment as Compass Point downgrades the stock to sell, slashing its price target from $330 to $248. The move follows weaker-than-expected Q2 earnings and fading retail interest in crypto equities, with subscription revenues missing estimates by 8%. Early Q3 trends suggest continued pressure, particularly in Coinbase One and technology fee segments once seen as growth drivers.

The crypto market's stalling momentum compounds concerns. Bitcoin and ethereum have failed to capitalize on broader equity market recoveries, while stablecoin competition looms as a 2025 valuation risk. "We remain constructive on the cycle but expect a choppy Q3," analysts noted, citing historical weak seasonality and dwindling enthusiasm for crypto-correlated stocks.

Bitcoin Could Hit $140K in 2025, Says Elliott Wave Analyst

Bitcoin may still have room to rally before entering a downturn, according to a top Elliott Wave market analyst. The world’s largest cryptocurrency dropped 4% over the past week, hitting lows under $112,000. However, market experts say this is just a short-term dip in a larger bullish wave.

John Glover, chief investment officer at crypto firm Ledn, believes Bitcoin is on track to reach $140,000. He says the market is currently in the third impulse wave (wave iii) of a five-wave rally. According to him, this move is still playing out and could peak in 2025. “We’re still on target to hit $135,000 – $140,000 by the end of 2025,” Glover noted in an email.

The recent correction is not a red flag, according to Glover. He calls it a “typical retracement wave,” which often follows strong upward moves. Bitcoin’s drop came after long-term holders took profits NEAR the $120,000 mark. Crypto stocks like MicroStrategy and Coinbase also saw losses.

However, Glover expects bitcoin to hit $130,000 in the next few weeks. Then, prices could pull back to $110,000 before the final push toward $140,000 begins.

The Elliott Wave Theory, formulated in 1938, assists analysts in their price prediction activities, giving due importance to crowd psychology and pattern cycles that drive price movements.

Coinbase CEO Condemns UK Ban on Crypto Ad as Attempt to Silence Criticism

Brian Armstrong, CEO of Coinbase, has publicly criticized the UK's decision to ban the exchange's latest advertisement. The ad, titled "Everything is Fine," used satire to highlight economic frustrations in the UK, including rising living costs and dissatisfaction with the Labour-led government. It positioned Bitcoin as a viable alternative for financial independence.

UK broadcasters removed the ad, citing misleading messaging and political undertones. Regulators argued the campaign presented crypto as a guaranteed solution and painted an overly negative picture of the UK's economic situation. Armstrong framed the ban as an effort to suppress dissent against a "broken financial system."

SEC’s ‘Project Crypto’ Could Transform Wall Street Forever — Say Bernstein’s Analyst

The U.S. financial system stands on the brink of a revolutionary shift as the SEC launches "Project Crypto," a bold initiative that could redefine the regulatory landscape for digital assets. Led by Paul Atkins, the plan aims to bring clarity and innovation to America's crypto market, potentially reversing the exodus of businesses to more accommodating jurisdictions.

Analysts at Bernstein hail the project as the most ambitious vision ever proposed by a U.S. regulator for cryptocurrency. The announcement, made during Atkins' speech "American Leadership in the Digital Finance Revolution," positions blockchain adoption as the next evolutionary step following historic milestones like the NYSE's founding and the rise of electronic trading.

Project Crypto's core proposition allows U.S. firms to issue tokenized securities while leveraging platforms like Coinbase as bridges between traditional and on-chain markets. This MOVE could finally provide the regulatory certainty that has eluded the industry for years.

Coinbase Aims to Foster Next Wave of Crypto Businesses with CaaS Platform

Coinbase CEO Brian Armstrong drew parallels between the company's crypto-as-a-service (CaaS) offerings and Amazon's pioneering AWS cloud infrastructure during the Q2 2025 earnings call. The exchange is leveraging its institutional-grade crypto infrastructure to accelerate adoption among traditional financial players.

"We've exposed our internal systems as third-party infrastructure, mirroring Amazon's AWS playbook," Armstrong stated. The CaaS platform solves critical pain points like secure key storage, multi-chain integration, and crypto payments - allowing institutions to bypass years of development work.

Brian Foster, head of CaaS at Coinbase, confirmed the rebranding of existing infrastructure services into a unified platform. The move comes as regulatory clarity improves and institutional demand resurges across crypto markets.

Coinbase Stock Tests Key Support Level Amid Bearish Pressure

Coinbase Global Inc. (COIN) faces a pivotal moment as its stock price hovers near the $310 support level. The shares have retreated sharply from recent highs above $425, with bearish momentum accelerating. Analysts are closely monitoring whether the stock can reclaim $340 to avoid a deeper correction toward $270.

Ali Martinez, a prominent crypto analyst, highlighted the critical juncture in a recent tweet. "Coinbase $COIN must reclaim $340 soon to avoid a potential correction down to $270," he warned. The stock's performance carries broader implications for crypto market sentiment, given Coinbase's position as a bellwether for the industry.

The recent pullback follows months of strong upward momentum that saw COIN shares more than double from their 2024 lows. Market participants now await either confirmation of support or breakdown, which could signal the next directional move for this closely watched stock.