Robinhood’s extraordinary crypto trading revenues in the last quarter of 2024 will be difficult to repeat in the first quarter. The significant increase observed in the company’s transaction -based revenues points to the possibility of slowing down in the coming period, with the decrease in uncertainty and crypto asset volume in market conditions.
Weakening interest in crypto currencies
JPMorgan Analyst Kenneth Worthington said that Robinhood users may have declined to $ 52 billion in the first quarter, a trading volume of approximately $ 71 billion in the last quarter. This decrease brings the interpretation that the overall decline in the transaction volume is linked to the risk of avoidance.
Kenneth Worthington: “The decline in the markets negatively affected both stocks and crypto asset markets.”
Worthington, especially towards the end of the quarter, the crypto market and the general stock exchange decreases will be effective in these results, he said.
JPMorgan Expectations
The dramatic increase of 700 %helps to explain the rise in Robinhood’s transaction -based revenues in the last quarter, although the total assets of the company increased by 41 %annually, it is expected that a decrease of approximately 5 %compared to the previous quarter.
In addition, the softening observed in demand for margin and derivative procedures in the first quarter and evaluations were made that Robinhood could provide additional pressure on the overall performance of Robinhood. This was observed as a trend followed on other platforms operating in the sector in a similar way.
Analyst said that a downward movement of approximately 10 %may be in question, considering the $ 49 transaction price just below the current price level. This assessment reveals that discussions continue in terms of the company’s risk and return balance.
Analyst views and explanations lead to investors’ re -evaluation of risks and opportunities in the digital asset market, while giving clues about the general situation of the sector.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
