Compass Point Ups Coinbase Rating as Bitcoin Recovery Takes Hold

Compass Point has upgraded its rating for Coinbase Global to Neutral from Sell, citing expectations that Bitcoin is recovering from a cyclical bottom. The firm raised its price target to $177 from $130, and currently trades at $175.26 with a market cap of $46.24 billion. Analyst Ed Engel noted that Bitcoin historically trades in four-year cycles and the current cycle is tracking closely with historic norms.

In August 2026, Bitcoin experienced its largest short liquidation in history with $3 billion in shorts liquidated, and funding rates on perpetual exchanges have declined to low single digits, implying leveraged long positions are not overextended. Coinbase shares have shown strong returns over the last month, but investors should note the stock's beta of 3.39 reflects significant volatility relative to the broader market.

Compass Point still sees secular headwinds for Coinbase as competition pressures both pricing and margins. The firm expects retail volumes to eventually recover, noting that trading volumes have historically been a lagging indicator for crypto cycles.