Consumer-price inflation slowed to 2.4% year-over-year in January, down from 2.7% in December and below consensus forecasts. Headline CPI rose 0.2% month-over-month, undershooting estimates and reviving risk appetite. Coinbase shares jumped 9.93% in premarket trading as investors priced in potential Federal Reserve easing.

On January 28, Baird began coverage of Coinbase with a Neutral rating and set a $240 price target on the shares. The firm highlighted Coinbase’s status as the largest US bitcoin exchange and its expanding retail and institutional trading capabilities. Baird also cited the “Everything Exchange” program and balanced risk-reward given recent trading volume declines and regulatory concerns under the Clarity Act.

Subscription revenue growth and product diversification, including staking and prediction markets, are seen as key drivers of future earnings. Investors will monitor monthly active user trends, staking volumes and progress on new offerings. Regulatory developments and potential Fed rate cuts remain critical factors influencing broader crypto market sentiment and Coinbase’s growth prospects.