Compass Point reiterated its bearish rating on Coinbase, citing increased competition in derivatives markets.

CoinFeed reported on June 2nd that, according to Decrypt, Compass Point analysts reiterated their bearish rating on Coinbase with a price target of $140, warning that intense competition in the derivatives space will squeeze Coinbase's profit margins. The analysts pointed out that although Coinbase, through its subsidiary Deribit, has obtained regulatory approval to offer offshore crypto perpetual contracts to US users, the potential entry of Kalshi and Binance exacerbates the risks. Intense competition and low user switching costs limit Coinbase's pricing power relative to spot trading, especially among the high-net-worth users most likely to trade these products.