Coinbase Shares Plummet as Wall Street Cuts Price Targets

Coinbase's shares dropped over 5% in pre-market trade on Friday after several brokerages lowered their price targets following the company's second-quarter earnings report.

The price targets were reduced due to lower crypto trading volumes and softer third-quarter guidance, according to Barclays, Goldman Sachs, BTIG, and Clear Street analysts.

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

The CLARITY Act is also being closely watched by investors as it could establish a clearer regulatory framework for digital assets in the U.S., although supporters are struggling to secure the necessary Senate votes.