Coinbase Gets 'Buy' Rating From Bernstein As Trump's Crypto Policies Take Shape
Investment firm Bernstein has set a $310 price target on Coinbase shares, projecting a 69% upside as crypto-friendly policies from the Trump administration take shape.
Bernstein analysts have started covering Coinbase and are bullish on the cryptocurrency exchange compared to its rivals. They predict that Coinbase could benefit greatly from a more positive regulatory environment in the crypto space following the election of US President Donald Trump.
Strong upside potential
Bernstein has set a $310 price target on Coinbase shares, which are trading around $182, down slightly by 3.3% on the day. The investment firm’s report suggests that with Trump’s policy of making the US the “cryptocurrency capital of the world,” Coinbase will have a big advantage thanks to its 66% market share in the US.
Impact of new policies
Bernstein also highlighted that positive regulations in the crypto industry will help promote Coinbase’s growth, while creating a more complete framework for digital asset management, including the Trump administration’s plan to create a Bitcoin strategic reserve.
In addition to Bitcoin, President Trump surprised everyone by announcing his intention to add other assets such as Ethereum, XRP, Solana, and Cardano to the US national cryptocurrency reserve. However, Bernstein analysts noted that this move could face difficulties in implementation if there is intervention from the US Central Bank.
Bernstein Review
Bernstein also forecasts that, despite increased competition and pressure on transaction fees, the trend of bringing the global crypto market back to the US will help Coinbase overcome these challenges. The company recorded a sharp increase in revenue in the fourth quarter of 2024, up 130% year-on-year, with trading revenue also doubling.
Coinbase is currently the largest cryptocurrency exchange in the United States, allowing users to buy, sell, and trade digital currencies and tokens. The company also provides Bitcoin custody services for leading asset managers, including BlackRock, in cryptocurrency exchange-traded funds.
Trump Administration Promises
Trump pledged to promote the digital asset space during his election campaign, with strong financial support from major investors in the industry. Since taking office, he has implemented pro-tech policies, appointed crypto-friendly regulators, and significantly changed regulations from the previous Biden administration.
This policy adjustment is expected to facilitate Coinbase and help the crypto market grow stronger in the coming years.