Profitability ChallengesThe outlook for the second quarter disappoints due to a structural shift in volume mix from retail to institutions, which earns thinner margins, thereby dragging near-term profitability.
Trading Volume DeclineDespite another recent all-time high for BTC/USD and widespread optimism, exchange volumes remain subdued with COIN's June-to-date average daily trading volumes running 28% below May volumes.
Valuation ConcernsThere is a view that the retail trading backdrop is peakish and that Coinbase's valuation is seen as full relative to its long-term growth.