The American investment firm Bernstein is predicting a significant surge in Coinbase stock amid Trump-backed changes in U.S. cryptocurrency policy.
Growth Prospects for Coinbase Stock
Bernstein analysts have initiated coverage on Coinbase stock with an 'outperform' rating, setting a $310 price target, 64% above the current valuation. Despite a 24% drop in 2025, analysts are confident in a trend shift due to U.S. government changes.
Trump Administration's Support for Crypto Industry
President Donald Trump has significantly shifted the government’s stance on cryptocurrency, positioning the U.S. as a leader in this field. His administration has created a Bitcoin Strategic Reserve and appointed David Sacks as the crypto czar. A stablecoin bill is expected in the first half of 2025, followed by legislation to clarify digital asset securities and market structure. While this could increase competition from banks and fintechs, analyst Gautam Chhugani is confident in Coinbase's market dominance.
Brian Armstrong's View on Future Changes
Coinbase CEO Brian Armstrong described the changes as a 'sea change for the industry.' He announced plans to employ over 1,000 new U.S. staff and stressed the significance of the Bitcoin Strategic Reserve. Armstrong believes the U.S. example will prompt other G20 nations to pay attention to cryptocurrency.
While analysts remain divided on Coinbase's future prospects, shifts in U.S. cryptocurrency policy could bolster confidence in crypto technologies and drive up the company's stock value.
