Coinbase Defies Morgan Stanley Crash Warning with Surging Stock Price

A warning from Morgan Stanley's chief US equity strategist, Mike Wilson, sparked a sell-off in the stock market, but one cryptocurrency-related company bucked the trend. Coinbase (COIN) saw its stock jump almost 8% on Monday morning and continued to climb.

The warning came after oil prices rose, which could lead to lower liquidity, according to Wilson. However, Compass Point analyst Ed Engel didn't see it that way. He upgraded his rating for Coinbase from 'sell' to 'neutral', citing improving crypto-cycle trends and EBITDA growth.

Engel's new target price for Coinbase is $177, which the company already surpassed on Monday morning. The upgrade was partly due to the Digital Asset Market Clarity Act, a bill that could provide clarity for cryptocurrency regulation. However, Engel expects the bill to fail in the Senate vote this week.