JPMorgan Chase lowered its target price for Coinbase, expecting its performance to be dragged down by trading volume and weaker cryptocurrency prices.

Ahead of Coinbase's upcoming Q4 earnings report, JPMorgan lowered its price target for Coinbase from $399 to $290, citing factors including declining crypto trading volume, weaker asset prices, and slower USDC growth. However, the bank maintained its "Overweight" rating on Coinbase. Analysts expect Coinbase's adjusted EBITDA for the quarter to fall to approximately $734 million, a significant decline from the previous quarter, primarily due to reduced spot trading volume and weaker stablecoin-related revenue. JPMorgan projects spot trading volume of approximately $263 billion and stablecoin-related revenue of approximately $312 million for the quarter. While the acquisition of the derivatives exchange Deribit will contribute new revenue, the overall market downturn continues to put pressure on performance. Besides JPMorgan, institutions such as Barclays and Compass Point are also more cautious, believing that retail trading, blockchain rewards, and subscription and service revenue may fall short of expectations and remain highly dependent on the overall performance of the crypto market.