By noon on February 6, the fog of uncertainty had begun to lift. Both cryptocurrencies and crypto-linked stocks had a solid rally.

But Wall Street strategists aren’t rushing in just yet.

Citibank has lowered its expectations Coinbase (NASDAQ: COIN ), citing persistent volatility and continued uncertainty surrounding US crypto regulation.

Related: Crypto shares surge as much as 25% after major relief

Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase remains the largest cryptocurrency exchange in the United States.

Coinbase drew attention last year for supporting the US Digital Asset Market Structure Framework, a bill aimed at clarifying cryptography regulations.

But when Sen. Tim Scott unveiled a new draft, the exchange fizzled. Finding several unfavorable provisions, finally Coinbase he withdrew your support

At press time, COIN was trading 11.38% higher at $162.76 as Bitcoin made its journey towards $70,000.

Still, the stock is 93% below its all-time high of $444 set in July 2025. Year to date, COIN is down 31.12%, extending a 39.74% decline over the past 12 months.

In addition to the tension, Cathie Wood’s Arca Invest sold More than $19 million in Coinbase shares on Feb. 5, just days after adding to his position.

In a note to clients, analysts at Citigroup cut their price target to $400 from $505, it said CoinDesk. Analysts cited weaker trading volumes, reduced institutional flows and stagnant crypto legislation.

The new target still means a potential doubling from COIN’s recent close at $146. Analysts reiterated a “Buy/High Risk” rating, calling Coinbase the “category leader” and a likely beneficiary of future crypto reform.

However, the road to this recovery may take time. Citi now expects Senate negotiations on the market structure bill to drag on until 2026, delaying clarity for digital asset companies.

Coinbase plans to release its fourth-quarter and full-year 2025 results after the close on February 12.

Against that, Citi’s team, led by Peter Christiansen, cut its fourth-quarter net income forecast by 10% to $1.69 billion, about 4% below market consensus.

Factoring in a $2.3 billion drop in the market value of Coinbase’s crypto holdings and its stake in Circle, analysts now expect a GAAP loss of $2.64 per share for the quarter.