Shares in the Coinbase crypto exchange (COIN) are rallying on Wednesday in response to a rebound in the overall crypto market. Coinbase stock jumped 4.5% in the morning session after the broader cryptocurrency market rebounded. The climb was partly driven by news that investment firm Vanguard had allowed its clients to access Bitcoin ETFs. Bank of America shared a similar point with its clientele, advising wealth management clients to allocate up to 4% of their portfolio to crypto.

The rally in the crypto space provided a strong tailwind for related stocks, including Coinbase (COIN) and Strategy (MSTR). COIN stock saw a big dip in the past month by over 16% as crypto faltered. A recent hike in institutional interest in the digital asset sphere, however, has fueled momentum heading into a big new year for the industry.

Firms Advise to Hold Crypto: Will That Spur a COIN Stock Boom?

Several top firms are praising crypto and advising investors to dive into the dip before the new year. In 2025, institutional interest in cryptocurrency, especially Bitcoin, grew to record levels, sending BTC and other assets to ATH levels. While those surges have since been reversed, firms like BlackRock insist that the trend may reverse next year as US debt increases. Additionally, despite some bearish indicators, the overall sentiment in the cryptocurrency market remains positive, with analysts predicting potential growth for altcoins that can spur gains for market platforms like Robinhood and Coinbase.

Furthermore, Wall Street analysts are optimistic about Coinbase’s future, with all major analysts issuing a Buy rating. HC Wainwright & Co. leads with a $425 price target, significantly above the current market price of $263.26. Such a gain would mean an approximate ROI of over 70% if investors bought into COIN now.

Also Read: BlackRock Says US National Debt Will Accelerate Crypto Adoption

Analysts at CNN share a similar view, even projecting a leap to $500 in the next 12 months. Out of 37 researchers surveyed by the platform, 57% suggest calling COIN a buy, while 32% advise that the stock has a hold rating.