Goldman Sachs Sticks with 'Buy' on Coinbase and Robinhood Amid Bitcoin Rally

Goldman Sachs has reaffirmed its support for Coinbase and Robinhood by maintaining its 'Buy' ratings on both companies. The investment bank also increased its price target for Coinbase to $196, a boost from its previous estimate of $173.

The move comes as the price of Bitcoin surges past the $80,000 threshold, with a 26% weekly gain in tow. This rally has been accompanied by a significant increase in institutional investment in cryptocurrencies, with Goldman Sachs holding $86.5 million across five spot XRP exchange-traded funds (ETFs) at the close of the second quarter.

Despite trading volumes dropping 30% in July and an additional 21% contraction in August, Goldman Sachs believes that the market could experience a rebound if overall valuations remain near $2.8 trillion. The bank's analysts point to operational activity across crypto exchanges entering a recovery phase, driven by increased spot prices encouraging both retail and institutional participation.