1. Robinhood's Profit Surges Amid Post-Election Trading Frenzy
Robinhood reported a significant increase in fourth-quarter profit, exceeding expectations due to a surge in trading activity following Donald Trump's re-election. The company's transaction-based revenue saw a substantial rise of 236% year-over-year, reaching $672 million, largely driven by a 700% increase in crypto trading revenue. Bitcoin's rise towards the $100,000 mark fueled this growth amid optimism about pro-business policies under the new administration. Robinhood posted an adjusted profit of $1.01 per share, surpassing analyst expectations of 44 cents. The company also achieved over $1 billion in quarterly revenue for the first time, contributing to a record-breaking yearly revenue of over $3 billion. Assets under custody grew by 88% to $193 billion, and net interest revenue increased by 25% to $296 million, primarily from margin investing. Following the positive earnings report, Robinhood's shares rose by more than 14%.
2. Bitcoin Briefly Dips Below $95,000 Amid Inflation Concerns
Bitcoin briefly fell below $95,000 as higher-than-expected inflation data dampened investors' hopes for a Federal Reserve rate cut anticipated in March. Despite the dip, Bitcoin recovered, trading near $96,000 later the same day. The inflation concerns also impacted Bitcoin-related stocks such as Strategy, Coinbase, and Marathon Holdings. Inflation fears and potential tariff uncertainties make Bitcoin a less attractive investment compared to higher-yield assets like Treasuries. Although Bitcoin hit a new high above $109,000 in January, optimism over U.S. President Trump's digital asset regulatory stance has not stabilized the cryptocurrency's value. While some view Bitcoin as a risk-off asset like gold, its performance in recent months suggests it often moves similarly to risk-on assets like stocks. Despite the price volatility, spot Bitcoin ETFs have seen positive inflows each week in 2025, though they experienced $243 million in outflows this week.
3. Coinbase Anticipates Significant Growth Ahead of Q4 Earnings Report
Several analysts have increased their price targets for Coinbase stock ahead of its Q4 earnings results, expected late Thursday. H.C. Wainwright raised its target to $330 and maintained a buy rating, while Citi boosted its target to $350, also retaining a buy rating. Both firms noted strong industry tailwinds and potential benefits from crypto industry developments. FactSet anticipates Coinbase to report significant earnings growth, with expectations of $2.11 per share, up from $1.04, and revenue to jump 93% to $1.84 billion. Transaction and subscription revenues are both expected to see substantial increases. Despite these positive outlooks, Coinbase shares have been consolidating and remain volatile amid macroeconomic developments and policy changes. Bitcoin, after surpassing $100,000 in January, has since fluctuated, impacted by political and economic events.
Conclusion
The cryptocurrency landscape continues to evolve rapidly, influenced by a confluence of market dynamics, regulatory developments, and technological advancements. Staying informed about these key events is crucial for investors and enthusiasts aiming to navigate the complexities of the crypto world effectively.