Bank of America raised its Coinbase price target from $174 to $203, reiterating its Buy rating.
Bitcoin and Ethereum rose 43% and 70%, respectively, in the third quarter.
But the rationale for $203 has nothing to do with crypto prices: Bank of America raised its earnings-per-share estimates for 2027 and 2028, focusing on whether stablecoin revenue can continue to grow after the Fed’s September rate hike. It lowered its near-term estimates because of weaker crypto trading volumes.
Two moves in the same report are like pressing the accelerator and the brake at the same time. Whether the near-term estimates pan out depends on whether trading volumes recover—not on the $203 price target.
Institutions are looking two years ahead; retail investors are looking at this year.
#EthereumUp70PercentInQ3LiquidityDeclines
Bitcoin and Ethereum rose 43% and 70%, respectively, in the third quarter.
But the rationale for $203 has nothing to do with crypto prices: Bank of America raised its earnings-per-share estimates for 2027 and 2028, focusing on whether stablecoin revenue can continue to grow after the Fed’s September rate hike. It lowered its near-term estimates because of weaker crypto trading volumes.
Two moves in the same report are like pressing the accelerator and the brake at the same time. Whether the near-term estimates pan out depends on whether trading volumes recover—not on the $203 price target.
Institutions are looking two years ahead; retail investors are looking at this year.
#EthereumUp70PercentInQ3LiquidityDeclines
