There wasn’t much cold in the crypto market on Thursday afternoon, with most cryptocurrencies and tokens seeing price increases of a few percent or so price increases. But if you looked at the results of a significant cryptocurrency exchange, you wouldn’t get that impression. As investors processed the revisions numerous analysts made to their price targets for Coinbase Global (NASDAQ:COIN), the stock price fell by more than 12% in late afternoon trade.
What’s the Reason?
After Coinbase’s second-quarter earnings report fell on Monday after market hours, analysts began revising their predictions. For the next day, several experts provided their revisions, most of which were pessimistic.
Kyle Voigt of Keefe, Bruyette & Woods made one of the most unfavorable revisions when he switched his rating from market performance (essentially neutral) to underperform (sell). CFRA followed suit, lowering its rating from buy to hold.
On the whole, nevertheless, analysts reduced price estimates while maintaining recommendations. One such analyst is Devin Ryan from JMP Securities, who recently reduced his $195 per share price estimate for Coinbase by $10. Although the current unfavorable mood on cryptocurrencies and associated equities is “callous at the moment,” he remains optimistic about the company’s long-term prospects.
What is Next for Coinbase?
It’s probably not necessary to point you that Coinbase relies almost entirely on cryptocurrency trading activity. There is no guarantee that all cryptocurrency and token markets will ice over during the crypto winter. Investors are still leery of such assets out of fear of being burnt. Hence the market is now somewhat quiet. This is not helping Coinbase at all.
Featured Image: Megapixl @Burdun
Author Shariq Khan 
