Smaller crypto investors are reportedly starting to return to retail trading apps like Robinhood and Coinbase after BTC has risen 25% in the past month.
A new report from Bloomberg says that small “mom and pop” investors are creeping into the cryptocurrency market, but they are far from seeing the same level of involvement as in the last bull market.
Robinhood and Coinbase released strong earnings reports last week. Specifically, Coinbase announced a surge in revenue and users, achieved its first profitable quarter in two years, and sent its stock price higher.
Kyle Doan, a trader at Arca, told Bloomberg:
“There are signs that retail customers are starting to return to the market, but not as much as in the last bull market…Even crypto stocks like COIN and Miner are showing more volatility than many tokens.”
Oppenheimer & Company analyst Owen Lau said:
“Retail volumes are only 16% of their previous peak. With money coming back from bankrupt companies, there is potentially a lot of room to run.”
Coinbase CFO Alecia Haas also told Bloomberg that the company sees “good momentum dynamics” and that the Bitcoin halving, scheduled for April, when miners' BTC rewards will be halved, has historically been associated with retail engagement. He pointed out that this led to an increase in growth.
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