Bank of America has upgraded Coinbase from “neutral” to “buy,” marking the second bullish rating the crypto exchange has received this week. The bank cited easing tax-loss selling pressure, shifting short interest, and Coinbase’s expanding product strategy as key drivers behind the upgrade.
In a research note released Thursday, Bank of America said Coinbase is increasingly positioning itself as a central gateway for moving financial activity on-chain. The bank described the company’s evolution toward an “everything exchange,” highlighting its push beyond crypto trading into a broader financial ecosystem.
Product Expansion Drives Bullish Outlook
Bank of America pointed to Coinbase’s expansion into tokenized real-world assets — including stocks and exchange-traded funds — as well as its entry into prediction markets. These initiatives, the bank said, strengthen Coinbase’s ability to cross-sell products to both existing and future users, while laying the groundwork for what it called a new financial system.
While Coinbase shares remain about 40% below their July highs, the bank noted that underlying fundamentals have improved. According to the report, product development accelerated during the recent crypto market correction, while the company’s total addressable market continued to grow.
Based on these factors, Bank of America said Coinbase stock could climb roughly 38% from current levels, setting a price target of $340. The bank also highlighted a reversal in short interest and the fading impact of tax-loss harvesting that weighed on shares late in the fourth quarter.
Goldman Sachs Also Turns Bullish
Earlier this week, Goldman Sachs also upgraded Coinbase to a “buy” rating. Goldman said the recent market pullback left crypto-related stocks trading at discounted valuations, potentially setting the stage for a rebound in early 2026.
Despite recent volatility, Coinbase shares have shown wide price swings over the past year. The stock is down 5.6% over the last 12 months to around $245.6, but has traded between a low of $151.8 and a high of $419.8 during that period.
Base Network and Political Tailwinds
Bank of America also highlighted Coinbase’s long-term growth potential through its Ethereum layer-2 network, Base. The bank said a potential token linked to Base — if launched — could raise significant capital and encourage developers and early adopters to build more on-chain applications, although Coinbase has not confirmed plans for such a token.
The bank added that Coinbase could also benefit from the broader political environment, noting that U.S. President Donald Trump still has several years in office to advance his goal of positioning the United States as a global crypto hub.
“The world is still in the early stages of crypto adoption, and we see Coinbase as the trusted platform with the leading U.S. market share, making it a natural partner for traditional finance,” Bank of America said.
Risks Remain
Despite the bullish outlook, Bank of America flagged potential headwinds. These include the possible return of Binance to the U.S. market and the risk of further declines in crypto prices, both of which could limit Coinbase’s upside in 2026.
