David Edwards
Recent reports indicate a resurgence of interest among smaller cryptocurrency investors, who are gravitating towards platforms like Robinhood and Coinbase, following a 25% increase in Bitcoin’s value over the past month. A Bloomberg article highlights this trend, pointing out that while these “mom-and-pop” investors are re-entering the crypto space, their activity levels haven’t reached the heights seen in the previous boom.
Both Robinhood and Coinbase have recently shared upbeat earnings reports. Coinbase, in particular, revealed a significant jump in both revenue and user numbers, marking its first profitable quarter in two years, which led to a sharp rise in its stock price.
Kyle Doane, a trader at Arca, shared with Bloomberg that there are indications of retail investors dipping their toes back into the market, albeit not at the intensity witnessed during the last bullish phase. He noted that cryptocurrency stocks, including Coinbase (COIN) and those of miners, are experiencing greater fluctuations than many cryptocurrencies themselves.
Owen Lau, an analyst at Oppenheimer & Co., mentioned that retail trading volumes are currently only at 16% of their peak during the last surge. He suggests that as funds recover from bankrupt entities, there’s significant potential for growth.
Alesia Haas, Coinbase’s CFO, also expressed optimism to Bloomberg, pointing to “good momentum drivers” ahead. She highlighted the upcoming Bitcoin halving event in April, which will reduce the rewards for Bitcoin mining by half. Historically, such events have led to increased retail participation and overall market growth.
