Coinbase drops 11%

According to a Monday downgrade note from Goldman Sachs, the ongoing bear market for Coinbase stock will not end anytime soon.

According to the bank, the sharp decline in bitcoin and other cryptocurrencies will reduce trading volumes, which are critical for a cryptocurrency exchange like Coinbase to thrive. Will Nance of Goldman Sachs downgraded Coinbase to "Sell" from "Neutral" and set a $45 price target, implying a potential 23 percent drop from current levels.

Coinbase shares fell as much as 11% on Monday and are down 86% from their all-time high, as cryptocurrencies have lost trillions of dollars in value since bitcoin peaked in November. According to the note, sentiment in the crypto space has been crushed after several high-profile stablecoin implosions resulted in billions of dollars of losses for investors, and increased regulation will likely depress Coinbase's revenue even further.

Nance estimates Coinbase's revenue will fall 61 percent year over year in 2022 based on current crypto asset levels and trading volumes. According to the note, while Coinbase announced an 18 percent reduction in its workforce earlier this month, those cost-cutting measures will likely not be enough, and more job cuts are likely.