Bernstein has initiated coverage of Coinbase, rating it as outperform with a price target of $310, projecting a 69% upside from its recent trading price of $182 per share. This optimism is primarily due to a more crypto-friendly landscape anticipated under President Donald Trump. The analysts highlighted Coinbase's dominant position in the U.S. crypto market, holding a 66% market share. They noted Trump's aim to establish America as the 'crypto capital of the world' and the potential for regulatory support that may boost the crypto industry. Despite a challenging market environment, the report stated that Coinbase's revenue surged 130% in Q4 of 2024, outperforming analyst expectations. Concerns were raised regarding competitive pressures and fee reductions, but Bernstein believes the shift of global crypto markets back to the U.S. will mitigate these issues. The broader context includes Trump's ambitions of creating a national crypto reserve featuring major cryptocurrencies such as Bitcoin and Ethereum, which the analysts view as a complex endeavor if central bank involvement is necessary.

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