Multiple Wall Street firms cut their profit forecasts for Coinbase and other crypto companies for Q1.

Crypto news, according to CoinDesk, as crypto trading activity cools and token prices fall, Wall Street analysts are lowering profit expectations for crypto companies like Coinbase in the first quarter. Barclays downgraded Coinbase, noting that global crypto trading activity has fallen to its lowest level since the end of 2023, with March being the month of lowest trading volume for Coinbase since September 2024, and no signs of improvement in April. They expect first-quarter trading volume to decrease by approximately 30% quarter-over-quarter. Oppenheimer also lowered Coinbase’s trading volume and revenue forecasts, reducing quarterly trading volume estimates from $244 billion to $211 billion, and total revenue expectations to $1.48 billion. Analysts pointed out that Bitcoin dropped over 22% in the first quarter, and Ethereum fell 29%. Despite Circle’s USDC stablecoin network continuing to expand, core crypto trading business remains sluggish. Coinbase’s strategic shift towards derivatives, tokenized assets, and an “all-exchange” approach may take longer to show results. Barclays also noted that the regulatory status of stablecoin rewards remains uncertain. Coinbase will release its earnings report on May 7, Bullish on April 23, and Circle has not yet announced a date.