Crypto firms face profit squeeze amid trading slump

Major investment firms are downgrading cryptocurrency platforms like Coinbase due to a significant drop in trading activity and falling token prices. Analysts warn that this slump, the weakest since late 2023, threatens first-quarter earnings. Barclays downgraded Coinbase, citing a roughly 30% decline in trading volumes and pressure on profitability, while Oppenheimer also trimmed its estimates. Despite pockets of strength in stablecoins and newer ventures, the slowdown in core trading revenue is forcing a reassessment of sector-wide expectations ahead of upcoming earnings reports.