Coinbase and Bullish Stocks Rise on Analyst Upgrades and Bitcoin Rebound
Compass Point raised price targets for COIN and BLSH, citing Bitcoin's recovery and the potential passage of the CLARITY Act.
Compass Point raised its price target for Bullish to $51, implying a 45% upside from Friday's close. The firm upgraded the stock to "Buy" from "Neutral." Coinbase was also upgraded to "Neutral" from "Sell." Its price target increased to $177, just above the recent trading level. Both stocks gained over 2% in pre-market trading.
The upgrades followed a Bitcoin rebound toward $78,000. The digital asset rose more than 1% in the last 24 hours. This movement broke a week of negative performance. The analyst noted that Bitcoin is tracking historic four-year cycles. He expects the asset is recovering from a cyclical bottom.
Legislative Outlook Shapes Strategy
Analyst Ed Engel expects the Senate vote on the CLARITY Act to fail. He cited prior expectations that the bill would not pass. However, reports of presidential concessions on ethics provisions improved the odds. Engel stated the bill no longer determines the outcome.
He believes the SEC will release an innovation exemption if the bill fails. Tokenized equities are expected to launch next year regardless of legislative success. Bullish provides the best exposure to this catalyst. This view reverses his September 2025 initiation note.
Retail Sentiment Diverges From Price
Retail sentiment for Bullish remains in the bullish zone on Stocktwits. Chatter levels stayed low over the past day. For Coinbase, sentiment remains in the bearish zone. Chatter around the stock also stayed low.
Bitcoin sentiment is extremely bullish on the platform. However, fund flows did not match the price recovery. U.S. spot Bitcoin ETFs recorded net outflows of $13.29 million on Friday. This marked a fourth straight day of outflows. Source GN markets/crypto reported these figures.
Price Action Defies Outflows
Bitcoin edged toward $78,000 after a week of losses. The price rose over 1% in the last day. This rebound supported the upgrades for COIN and BLSH. The market reacted positively to the analyst's improved outlook.
