Citi has lowered the target price for Coinbase to $400, as the stock has fallen 65% from its all-time high

According to CoinDesk, Citibank has lowered the target price for cryptocurrency exchange Coinbase from $505 to $400, a decrease of about 20%, primarily due to weak trading volumes, slowing institutional activity, and uncertainty regarding the progress of U.S. cryptocurrency legislation.

The bank also reduced its net revenue forecast for Coinbase's fourth quarter of 2025 by about 10% to $1.69 billion and expects a U.S. GAAP loss per share of $2.64 for that quarter, partly due to its cryptocurrency asset holdings and the impairment of its stake in Circle.

Despite the lowered target price, Citibank maintains a "Buy/High Risk" rating on Coinbase, believing it to be an industry leader that will benefit from the eventual cryptocurrency regulatory reforms.

The bank pointed out that legislative progress, such as the Clarity Act, remains a key catalyst for driving a stock price recovery, but currently expects Senate negotiations on the market structure bill to potentially extend into 2026 and beyond.

Coinbase's stock price has fallen about 65% from its all-time high, rising 6% in pre-market trading on the 6th as the market slightly rebounded.