Coinbase Shares Plummet as Wall Street Firms Cut Price Targets

Coinbase's shares fell more than 5% in early trading on Friday after a string of Wall Street firms cut their price targets following the company's weak second-quarter earnings report.

The price cuts came from Barclays, Goldman Sachs, BTIG, and Clear Street, who cited lower crypto trading volumes and softer third-quarter guidance as the main reasons for reducing their forecasts.

Despite the disappointing quarter, BTIG and Clear Street noted that Coinbase continues to gain market share and diversify its business beyond spot trading.

Investors are also keeping an eye on the CLARITY Act, which could reshape the regulatory environment for the U.S. crypto industry.