The crypto honeymoon is over for now as analysts warn of a major first-quarter profit squeeze

Several major investment firms have preemptively downgraded Coinbase and other platforms as a sharp drop in trading activity and falling token prices threaten to derail upcoming first-quarter earnings results. What to know : Wall Street analysts are cutting forecasts for Coinbase and other crypto firms as trading volumes and token prices slump to their weakest levels since late 2023. Barclays downgraded Coinbase and now expects significantly lower profitability, while Oppenheimer trimmed its volume and revenue estimates but remains relatively more optimistic. Pockets of strength in stablecoins and newer businesses like derivatives and tokenized assets have yet to offset the slowdown in core trading, prompting analysts to reset expectations ahead of upcoming earnings reports.