Bank of America Turns Bullish: Upgrades Coinbase (COIN) to Buy with 38% Upside Target

Wall Street's crypto cold war just got a major defector.

Bank of America, a titan of traditional finance, just slapped a 'Buy' rating on Coinbase stock. Their price target implies a thirty-eight percent climb from current levels—a stark reversal that signals institutional sentiment is finally catching up to the digital asset revolution.

The Upgrade That Speaks Volumes

This isn't just another analyst note. It's a capitulation. When a legacy bank with 'America' in its name throws its weight behind the leading crypto exchange, the narrative shifts. It means the infrastructure is now deemed mature, the regulatory overhang manageable, and the growth trajectory undeniable. They're not betting on Bitcoin's price; they're betting on the pickaxes and shovels.

Reading Between the Lines

The thirty-eight percent upside target isn't pulled from thin air. It's a calculated bet on Coinbase's evolving business model—transitioning from a pure-play trading venue to a broader crypto ecosystem player. Think staking, institutional custody, and blockchain infrastructure. The volatility that once scared analysts is now being repackaged as 'recurring revenue.' Clever, that.

A Cynical Footnote for the TradFi Crowd

Let's be real—this upgrade reeks of a fund manager who finally realized their 'principled stand' against crypto was just costing them performance fees. Nothing converts a skeptic faster than watching a rival's bonus pool swell. Welcome to the party; the drinks are expensive, and the music doesn't stop.

The message is clear: the dam is breaking. When the old guard starts buying the narrative, the smart money is already looking for the next trade.

TLDR

• Bank of America upgraded Coinbase stock to “buy” with a $340 price target, marking the second upgrade this week after Goldman Sachs.
• The upgrade comes as Coinbase expands beyond crypto into 24/5 stock trading, prediction markets, and real-world asset tokenization.
• BofA sees 38% upside potential despite COIN shares falling 40% from July highs and trading at $245.60.
• A potential Base network token could raise billions and incentivize developers to build more decentralized finance applications.
• Short interest is reversing and tax-loss selling pressure from Q4 2025 is easing, creating favorable conditions for the stock.

Bank of America upgraded Coinbase to “buy” on Thursday, giving the crypto exchange a $340 price target. That represents about 38% upside from the current price of $245.60.

Coinbase Global, Inc., COIN

This marks the second major upgrade for COIN stock this week. Goldman Sachs also moved Coinbase to “buy” on Monday.

BofA analyst Craig Siegenthaler said the company is transforming into an “everything exchange.” The platform is moving beyond simple crypto trading into new territory.

Coinbase announced plans in December for 24/5 stock and ETF trading on S&P 500 names. The exchange also partnered with Kalshi to add prediction markets to its platform.

On Thursday morning, Coinbase said copper and platinum futures will launch on January 26. These moves aim to diversify revenue beyond crypto trading, which remains tied to bitcoin price swings.

The stock has been volatile. COIN traded as low as $151.80 and as high as $419.80 during 2025.

That’s a 176.6% difference between the year’s highs and lows. The stock is down 5.6% over the past 12 months.

Base Token Could Raise Billions

Bank of America highlighted the potential for a Base network token. Base is Coinbase’s ethereum layer-2 network, currently operating without its own token.

Management is weighing whether to launch a native token for Base. BofA estimates this MOVE could raise billions in capital.

A token WOULD help decentralize the platform and incentivize developers to build applications. It could also attract early adopters to use more onchain products.

Coinbase has not officially announced plans for a Base token. But the bank sees it as part of the company’s long-term strategy.

According to Knockoutstocks, COIN stock has a Hold rating based on 11 Buys, 18 Holds, and 1 Sell assigned in the last six months.

Real-World Asset Push Expands Market

Coinbase is also building out Coinbase Tokenize. This platform brings real-world assets like private equity and real estate onto the blockchain.

The service targets asset managers looking to reach younger, crypto-native investors. Blockchain settlement offers faster processing and lower fees than traditional systems.

BofA said this expansion increases Coinbase’s total addressable market. The bank described it as part of building a “new financial system.”

The analyst noted that while COIN shares dropped 40% from July highs, the company’s product development has accelerated. New offerings position Coinbase to cross-sell services to existing and future users.

Short interest in COIN is starting to reverse. Tax-loss harvesting pressure that weighed on the stock in late 2024 is also easing.

BofA said these technical factors, combined with new product launches, create a favorable setup. The firm maintains Coinbase remains the most regulated and trusted crypto company in the United States.

Coinbase’s near-term results will still depend on crypto price movements. But the exchange is working to reduce that dependence through diversification.

The company detailed its product roadmap at a December showcase. Equity perpetuals will launch internationally in 2026 as part of the expansion plan.