Smaller Retail Investors Return to Crypto Trading Apps as BTC Rallies: Report
Small investors are gradually returning to popular retail trading apps like Robinhood and Coinbase as Bitcoin (BTC) has experienced a 25% rally in the past month. Although their involvement is not as significant as during the previous bull market, there are signs of a comeback, according to a report by Bloomberg.
Retail trading platforms Robinhood and Coinbase recently released positive earnings reports. Coinbase, in particular, saw a surge in revenue and users, achieving its first profitable quarter in two years, which caused its share price to soar.
The Slow Return of Retail Investors
Trader Kyle Doane from Arca noted that while there are indications of retail investors reentering the market, it is not yet at the same level as during the last bull market. He also mentioned that crypto stocks like COIN and miners show more volatility compared to many tokens.
Owen Lau, an analyst at Oppenheimer & Co., revealed that the current retail volume represents only 16% of the peak volume from the previous market cycle. Lau believes that with funds returning from bankrupt entities, there is considerable potential for further growth.
Coinbase’s Positive Momentum Drivers
Alesia Haas, CFO of Coinbase, mentioned that the firm has observed “good momentum drivers.” She specifically highlighted the upcoming Bitcoin halving scheduled for April, which historically leads to increased retail engagement and growth. The halving event will cut miners’ BTC rewards in half.
Overall, smaller retail investors are cautiously reentering the crypto markets, attracted by recent positive developments and the potential for future growth.
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