Coinbase price target lowered to $70 from $84 at Oppenheimer

Oppenheimer analyst Owen Lau lowered the firm’s price target on Coinbase to $70 from $84 on heightened risks, while keeping an Outperform rating on the shares. The "spectacular fallout" of SVB (SIVB), the voluntary liquidation of Silvergate Capital (SI), and the abrupt shut down of Signature Bank (SBNY) have seriously impacted not only the ecosystem of digital assets but also the ecosystem of Silicon Valley, the firm notes. While the emergency backstop will likely stabilize the financial system, these failures have already broken some key infrastructures of the public blockchain/digital assets industry in U.S., namely SEN and Signet. That said, exchanges, trading firms, market makers and investors can use alternatives such as stablecoin, ACH, Customer Banks and BCB to facilitate transactions, Oppenheimer adds. The firm expects liquidity and trading volume to decrease until someone fills the void, and the uncertainty will linger in USDC and the industry.