Citigroup has cut its price target for Coinbase to $400 after the stock's steep decline of 65% from its record high. This adjustment comes as the bank noted a significant risk-off environment in crypto markets, exacerbated by weaker trading volumes and uncertainty surrounding U.S. crypto legislation. The analysts believe these factors contributed to their revised revenue and earnings forecasts for the exchange. Despite this downturn, the new price target still suggests a potential doubling from Coinbase's recent close of $146. Notably, Citi's analysts previously raised the price target to $505 in July 2025 when the stock reached nearly $450. Currently, shares gained 6% in pre-market trading, as crypto markets show signs of recovery following a crash that saw Bitcoin drop to $60,000. Yet, Citi emphasized that progress on the CLARITY Act remains crucial for restoring momentum to Coinbase's stock. The bank anticipates ongoing Senate negotiations over market structure legislation to extend beyond 2026. Coinbase's CEO, Brian Armstrong, highlighted the company's withdrawal of support for a sweeping digital assets bill due to provisions that could harm consumers. The legislative process has faced challenges, with crypto and banking lobbyists clashing over stablecoin yield and lawmakers deadlocked on key provisions. Analysts, led by Peter Christiansen, have further cut Coinbase’s fourth-quarter 2025 revenue forecast by about 10% to $1.69 billion. After accounting for a mark-to-market decline on crypto holdings, they now project a GAAP EPS loss of $2.64 for the quarter. Coinbase is set to disclose its fourth-quarter and full-year 2025 financial results on February 12. This pricing adjustment underscores the volatility and uncertainty that continues to plague the cryptocurrency sector. Investors should remain cautious as legislative developments unfold and market conditions evolve.