Morgan Stanley Downgrades Coinbase to Underweight, Slashes Price Target to $120
Morgan Stanley has turned more cautious on Coinbase, citing weakening trading activity and concerns over the Binance hack's impact on centralized exchanges.
Morgan Stanley has turned more cautious on Coinbase, citing weakening trading activity and concerns over the Binance hack's impact on centralized exchanges. This is an original TLT brief based on reporting by CoinEdition, with live market data added, as of Mon, 02 Nov 2026 23:45:02 UTC.
The downgrade reflects growing concerns about Coinbase's revenue prospects amidst a challenging market environment and potential loss of investor confidence in centralized exchanges following the Binance hack.
- Morgan Stanley downgraded Coinbase to Underweight with a $120 price target.
- Analysts cite weakening trading activity and slower earnings growth as key concerns.
- Binance hack raises fears about centralized exchange security and investor confidence.
- 2027 revenue estimate slashed by 28% by Morgan Stanley.
Morgan Stanley has downgraded Coinbase to Underweight and set a new price target of $120, reflecting growing concerns about the company's revenue prospects. Analyst Michael Cyprys pointed to weakening trading activity and slower earnings growth as the primary factors influencing the decision.
The downgrade comes amidst a broader market downturn, with the total crypto market cap at $2.65 trillion and 
Bitcoin down 1.36% in the past 24 hours. The overall market sentiment, as measured by the Fear & Greed Index, remains in 'Fear' territory at 37.
Multiple outlets, including CoinEdition and Cointelegraph, report that the recent Binance hack has raised concerns about the security of centralized exchanges and could further erode investor confidence. This development adds to the existing challenges faced by Coinbase, which has been grappling with a slowdown in trading volumes and increased competition.
CoinEdition provides the additional detail that Morgan Stanley has lowered its 2027 revenue estimate for Coinbase by 28%, indicating a more pessimistic outlook for the company's long-term growth. This figure underscores the depth of the concerns about Coinbase's ability to navigate the current market conditions.
The broader market context is also important, as the crypto market continues to face regulatory scrutiny and macroeconomic headwinds. These factors, combined with the recent security issues at Binance, contribute to a challenging environment for centralized exchanges.
Morgan Stanley Downgrades Coinbase to Underweight, Slashes P — questions & answers
Why did Morgan Stanley downgrade Coinbase?
The downgrade was due to weakening trading activity, slower earnings growth, and concerns over the Binance hack's impact on centralized exchanges.
What is Morgan Stanley's new price target for Coinbase?
Morgan Stanley has set a new price target of $120 for Coinbase.
How much did Morgan Stanley lower its 2027 revenue estimate for Coinbase?
The 2027 revenue estimate was lowered by 28%.
Which outlets reported this story?
This is an original TLT brief that synthesises reporting from CoinEdition. It is not a copy of any one article — follow the source links above for the original reporting.
Original summary — not financial advice. This is an original TLT brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.