Banking giant Goldman Sachs believes cryptocurrency exchange Coinbase will bleed more.
Stating that the shares of Coinbase will fall to $ 45, the banking giant predicts that the revenues of the stock market will decrease by 61%. The current crypto prices and trading volume are shown as the reason for this decrease that Coinbase will experience.
Goldman stressed that Coinbase may have to further reduce its workforce.
As it will be remembered, Coinbase laid off 1100 employees earlier this month. This means an 18% reduction in the workforce.
The company’s CEO, Brian Armstrong, stated that the hiring frenzy in the stock market is not sustainable. Armstrong said this change was necessary because of the growing recession.
Coinbase shares are down over 75% since the start of this year.
Analyst Dan Dolev stated that Coinbase’s margins may continue to decline due to increased competition. Binance US, one of Coinbase’s most important competitors, recently launched zero commission transactions for dollar-based trading pairs. This stands out as a development that could undermine Coinbase’s dominance.
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