Morgan Stanley chief US equity strategist Mike Wilson warned that the stock market could face a downturn within 30 days, citing potential oil price spikes as a liquidity risk. Despite this outlook, Coinbase shares rose nearly 8% to trade near $188.50, while the S&P 500 index declined by 0.8% during the same period.
The positive movement for Coinbase followed an upgrade from Compass Point analyst Ed Engel, who shifted his rating from sell to neutral. Engel set a price target of $177 for the stock, noting improvements in the crypto-cycle and EBITDA trends, though he cautioned about ongoing margin pressure from competition.
Engel’s analysis is tied to the upcoming Senate vote on the Digital Asset Market Clarity Act, which aims to define regulatory oversight for the crypto industry. While Engel expects the bill to fail, investors responded to the news by purchasing shares, anticipating that clearer rules could allow for token listings without litigation risks.
Market sentiment remains divided, as evidenced by the performance of other industry stocks. MARA Holdings shares fell 2% after JPMorgan downgraded the company to underweight due to concerns regarding a data center venture. Meanwhile, Morgan Stanley maintains a price target of $250 for Coinbase, significantly higher than the analyst consensus average of $201.
