Morgan Stanley Warns of Market Crash Within 30 Days…Coinbase Stock Surges

A Wall Street strategist warned on Sunday that the stock market could collapse within 30 days, yet Monday morning saw one stock completely ignore this warning.

Coinbase (COIN) shares rose nearly 8% to trade near $188.50, while U.S. 500 index funds declined 0.8% during the same period.

The warning came from Mike Wilson, Morgan Stanley's U.S. equity strategy chief, who told clients that oil—not artificial intelligence—posed a greater risk.

BeInCrypto reported Sunday on the market collapse warning, but Coinbase ignored it the following day.

The upward momentum came from Compass Point in Washington, where analyst Ed Engel upgraded Coinbase from sell to neutral. His new price target is $177, which Coinbase surpassed immediately at open.

Engel's rationale centers around a digital asset market clarity bill currently under Senate vote this week. The legislation determines cryptocurrency regulatory oversight and has already been postponed once until September, with the final vote expected before November.

Engel expects the bill to fail, but investors are buying Coinbase amid bearish expectations for the pending legislation that they believe will disappear this week.

Wall Street remains divided on the matter. MARA Holdings (MARA) declined 2% after JPMorgan reduced its weight due to data center business with Stargate, mirroring a similar May reaction when Morgan Stanley issued nearly identical analysis and Robert Samuelson, Coinbase's IR head, pushed back.

Morgan Stanley is not bearish in this case. It initiated coverage on September 10 at $250, well above the 28 analysts' average of $201 for Coinbase. Price targets range from $95 to $330, with Monday's trading aligning closest to the lower end.