Citigroup has reduced its price target for Coinbase from $505 to $400, citing weak trading volumes, slowing institutional activity, and uncertainty in U.S. cryptocurrency legislation. The bank also adjusted its net revenue forecast for Coinbase's Q4 2025 by 10% to $1.69 billion and anticipates a GAAP loss of $2.64 per share, influenced by its crypto holdings and a write-down in its Circle stake. Despite these adjustments, Citigroup maintains a "Buy/High Risk" rating, recognizing Coinbase as a leader poised to benefit from future regulatory reforms. The stock, which has fallen 65% from its peak, saw a 6% pre-market rebound on February 6th.