Buy Coinbase Shorts Despite Selloff, Monness Crespi Tells Investors — What Is The Analyst’s Rationale?

• Moness said that the probability assigned to the CLARITY Act passing "remains too high in certain corners."
• The firm reiterated its ‘Sell’ rating on the stock with a $120 price target. 
• The market structure bill to push the CLARITY Act forward remains stalled with a month-end deadline looming over crypto and bank executives to finalize a deal.

Monness Crespi analyst Gus Gala said in an analyst note on Monday that the firm will add Coinbase (COIN) shorts at current share levels. 

The analyst attributed Coinbase’s selloff to President Donald Trump's tariff moves, continued exchange traded fund outflows, and "signs of whales moving HODLs onto exchanges," as per TheFly.  

Moness also believes the probability assigned to the CLARITY Act passing "remains too high in certain corners." Clarity on the stablecoin loophole remaining open in the next draft of CLARITY Act "is far too optimistically priced in," the analyst told investors in a research note. 

The firm reiterated its ‘Sell’ rating on the stock with a $120 price target. 

CLARITY Bill Stall

The market structure bill to push the CLARITY Act forward remains stalled with a month-end deadline looming over crypto and bank executives to finalize a deal. However, according to a report from Eleanor Terrett The White House took charge in the latest round of discussions around the crypto market structure bill needed to move the Act forward.

White House Crypto Council Executive Director Patrick Witt introduced a draft text that stated restrictions on stablecoin rewards would be “narrow in scope.”

Coinbase Earnings

Coinbase’s revenue in Q4 tumbled 21% year-over-year to about $1.8 billion. Analysts on average expected Coinbase to post revenue of $1.83 billion in the quarter, according to data from Fiscal.ai.

The company swung to a net loss of $667 million compared with a $1.3 billion profit from the same period last year, due to falling token prices that led to a slump in trading activity across digital assets.

Crypto Selloff

Cryptocurrency, especially bitcoin, has been under the pump so far in 2026, pressuring stocks that are linked with cryptocurrency. Coinbase has been on the receiving end of the selloff. Bitcoin has logged its worst financial year opening on record. 

At the time of writing BTC price was down 4.3% at $64,548. 

Retail sentiment around COIN trended in ‘bearish’ territory amid ‘low’ message volume. 

Shares in the company have fallen 33% over the past year. 

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