Coinbase shares climb as Morgan Stanley warns of market risk

Wall Street strategist Mike Wilson, Morgan Stanley’s chief U.S. equity strategist, warned clients that a sharp rise in oil prices could drain liquidity and cause the stock market to crack within the next 30 days. The warning was issued on Sunday.

Coinbase bucks the trend

On Monday, Coinbase stock rose almost 8%, trading near $188.50, while the S&P 500 index fell 0.8% during the same period.

Analyst upgrade fuels rally

Compass Point analyst Ed Engel upgraded Coinbase from “sell” to “neutral” and set a new price target of $177, citing improving crypto‑cycle dynamics and EBITDA trends, though he noted ongoing margin pressure from competition. Engel did not issue a “buy” rating.

Regulatory backdrop

The upgrade came as the Senate considered the Digital Asset Market Clarity Act, a bill that would clarify which regulator oversees crypto assets. Engel expects the legislation to fail, which he believes could benefit Coinbase by reducing regulatory uncertainty.

Mixed reactions in the sector

Other crypto‑related stocks reacted differently. MARA Holdings fell 2% after JPMorgan downgraded it to underweight, citing concerns over a data‑center joint venture with Starwood.

Analyst coverage range

Coinbase is currently covered by 28 analysts with price targets ranging from $95 to $330. Morgan Stanley opened coverage on September 10 with a $250 target, well above the average.