Posted on

Robinhood Cash Surge: Sees $4 Billion Monthly Inflow From Users

Robinhood, a significant player in the United States financial technology sector, has recorded major growth. The platform has seen a notable rise in monthly user inflow.

Robinhood Monthly Deposits Surges To New Height

A correspondent at CNBC, Kate Rooney, recently shared the development with the crypto community on the X (formerly Twitter) platform. The CNBC reporter said Robinhood recorded increased profits in its most recent quarterly results.

Rooney pointed out that the platform is making some headway in its attempt to overtake established “brokerage companies” for market dominance. Additionally, Robinhood aims to expand beyond its “original base of inexperienced and younger traders” in the crypto market.

She further highlighted that over $100 billion of the firm’s assets are currently “under custody.” In addition, a “net positive transfer from every major brokerage competitor” drove the Q4 deposits to approximately $4.6 billion.

Consequently, this suggests its increasing popularity among investors looking to include digital assets in their portfolios for diversification. It also indicates the growing confidence and inclination toward the trading firm among crypto investors. 

Robinhood

The CNBC correspondent asserted that the numbers above consist of an “average customer transfer balance” of $100,000.

As per Rooney’s X post, Robinhood saw a substantial rise in monthly deposits valued at $4 billion in January. So far, the recent uptick signifies the online trading platform’s strongest month since early 2021.

During the same quarter last year, the trading platform lost $166 million, or $0.19 per share. However, this year, it made a profit of $30 million, or $0.3 per share.

As was revealed, Robinhood’s income rose due to increased net interest and transaction-based and other revenue streams. Over the three months, its net interest income grew by 4% to $236 million.

Taking Over The Active Trader Market

Vlad Tenev, Robinhood’s Chief Executive Officer (CEO), has revealed Robinhood’s intentions to take over the active trader market. Tenev recently disclosed this objective during a quarterly earnings call.

He stated that the firm’s user base and revenue have grown “nearly seven times” in the past four years. “looking at what is in front of us, we are excited by the opportunity to continue growing significantly from here,” he added.

Robinhood has gained market share and attracted net asset inflows from its major rivals. According to Tenev, the company will continuously invest in its “user experience on mobile” to achieve its goal.

Currently, the crypto enterprise stands out as the dominant player in market share. Tenev has confirmed the addition of futures and index options to the platform in the coming months of this year.

Bitcoin

Posted on

Crypto Analyst Predicts Potential Trend For Bitcoin As Price Slips

Rekt Capital, a well-known cryptocurrency analyst and enthusiast, has revealed the potential directions that the price of Bitcoin could take in light of the upcoming fourth BTC Halving.

Potential Retracement For Bitcoin

With the halving event approaching, analysts are debating what steps Bitcoin should take after its recent breach from the macro downtrend. One of those is Rekt Capital, who has weighed in on the particular issue and made a comparison to past trends.

The crypto analyst shared his latest projections during one of his YouTube predictions videos for Bitcoin. In the video, Rekt Capital delves in on the “next possible steps” that BTC is anticipated to take while highlighting “a breakout from its macro downtrend.”

Bitcoin

His analysis focuses mainly on the reaccumulation range that formed prior to the halving event in 2015-1016 period. He further drew a comparison between 2023-2024 and 2015-2016, while noting similarities between the two periods.

According to him, the trend that formed within that period has resurfaced in the current 2023-2024 period. “One of the things that contributes to that similarity is the reaccumulation that formed a few months before the halving,” he stated.

Rekt Capital pointed out the possibility of a retracement around the Bitcoin halving event. This is due to a scenario proposed by the crypto analyst in which a reaccumulation range break triggers a retreat.

An analogy to the cycle of 2015–2016 indicates a comparable rejection from a resistance level prior to the halving, which may have contributed to a possible retreat.

Furthermore, he has highlighted that such retracements are indicated by historical data but stresses that they are often brief. However, he asserted that after the retrace, which is the “last opportunity,” we would see a price increase for Bitcoin.

This surge will “turn the $46,000 price level into a new support level, and move to touch its old all-time high.” Rekt Capital also anticipates the price going beyond this level putting Bitcoin on a path to a new all-time high.

Factors The Buttress BTC Value, ETFs Not Included

Samson Mow, the Chief Executive Officer (CEO) of Pixelmatic, has revealed several factors that boost Bitcoin’s value. Mow took to X (formerly Twitter) to underscore these factors with the crypto community.

According to him, the value of Bitcoin is amplified by “scarcity, utility, and the failure of fiat.” Mow further insisted that BTC Spot Exchange-Traded Funds (ETFs) do not contribute to the token’s value.

His X post came in response to CNBC’s “Mad Money” host Jim Cramer’s post over his comments on BTC’s current action. Cramer asserted that “no one showed up” after the approval of BTC ETFs, which led to a decline in price.

Mow was displeased by Cramer’s claims, and he stated that many people were present while noting the net inflow. “A lot of people showed up. Just look at the net inflow and how much BlackRock, Fidelity, and others accumulated,” he stated.

Bitcoin

Posted on

Bitcoin Mania: EY Insider Reveals Demand From Wall Street Titans, $40,000 Soon?

Paul Brody, a prominent figure in the blockchain community and the Global Blockchain Leader at Ernst & Young (EY), recently shed light on the burgeoning demand for crypto, with Bitcoin taking the limelight. Earlier today, during a CNBC interview, Brody emphasized the heightened interest, particularly from family offices.

Family Offices Lead The Charge

According to Brody, family offices, which typically manage the vast wealth of affluent families, are increasingly diversifying their portfolios with cryptocurrencies. This is not entirely surprising, given the meteoric rise of Bitcoin and its potential as a hedge against inflation and economic uncertainty.

However, while family offices are diving headfirst into the crypto pool, institutional investors are more cautious.

Brody mentions that these larger entities, controlling over 200 trillion dollars in assets, are awaiting regulatory clarity, such as the approval of a Bitcoin ETF by the US Securities and Exchange Commission, before committing significant resources.

Bitcoin, despite comparisons, is distinctly different from traditional assets like gold. Brody highlights a unique trait of Bitcoin: its price does not result in increased issuance. Instead, the issuance of new Bitcoin reduces over time due to halving events.

This property makes its price more “rigid,” especially compared to other assets traditionally used as inflation hedges.

Moreover, the purpose behind acquiring Bitcoin varies among its buyers. Brody points out:

If you look at people who are buying Bitcoin, they are buying it as an asset. They are not buying it as a payment tool.

Brody further notes that Ethereum, another major cryptocurrency, is mostly acquired for its utility as a computing platform, particularly for business transactions and decentralized finance (DeFi) solutions.

Bitcoin To $40,000?

So far, Bitcoin has showcased a bullish trend, witnessing a near 10% increase over the past week and a 4.7% uptick in the last 24 hours. This surge has propelled Bitcoin to trade beyond the $31,000 mark, reaching $31,824 recently.

Observing the asset’s chart in the 1-day timeframe, BTC seems poised for even higher gains. As shown below, the asset has recently tapped into an order block and could continue its reversal to the upside, reaching a notable high.

Bitcoin (BTC) price recently taps an order block on the 1-day chart.

Additionally, considering the strong institutional demand for BTC, as revealed by Brody, coupled with the potential approval of a spot BTC ETF, a rally to the $40,000 mark seems to be on the horizon.

Furthermore, peering into the future of the financial landscape, Brody believes that traditional fiat currencies will continue to hold their ground.

However, with the ongoing discussions around Central Bank Digital Currencies (CBDCs) and the growing adoption of payment stablecoins, the crypto realm may be poised for evolution. 

With global political developments unfolding and pivotal elections on the horizon, Brody foresees Bitcoin and the broader crypto space experiencing accelerated growth in adoption and recognition.

Featured image from iStock, Chart from TradingView

Posted on

Coinbase And Ripple Playing Game Of Poker With The SEC, CNBC Correspondent

Amid deep regulatory uncertainty in the United States, several cryptocurrency firms consider sailing to more welcoming atmospheres. Top US-based firms Ripple and Coinbase, who’ve been cross-chairs with the Securities and Exchanges Commission (SEC), have already hinted at possible relocation. Reacting to the issues, two CNBC correspondents, Ryan Browne, and Arjun Kharpal, weighed in.

According to the journalists, crypto companies like Ripple and Coinbase are playing a poker game with the SEC.

Crypto Firms Threaten Relocation To Ease Regulatory Pressure

The regulatory atmosphere in the US crypto space has become supercharged over the past few months as the SEC accelerated their crackdown moves against crypto companies. The SEC turned its attention to Coinbase, Binance, Bittrex, and Kraken amid long-running litigation with Ripple.

Related Reading: Why Litecoin Is The Most Undervalued Asset in Crypto

These firms aren’t comfortable with the increased enforcement threats from the regulators as they complain the SEC has taken the regulation-by-enforcement approach without providing any clear guidelines for them. 

Coinbase and Ripple even threatened to relocate their business outside the US, hoping regulators would reconsider their hawkish stance.

The CNBC correspondents further noted that Ripple executives joined forces to publicly criticize the SEC and gain support from the broader crypto community. 

Prioritizing Politics Over Policy Is Unfavourable for the Economy, Ripple CEO Says

In their report, Browne and Kharpal quoted Ripple CEO Brad Garlinghouse, who, as a US citizen, expressed his disappointment with the situation. 

In a statement, Garlinghouse said, “The US is getting passed not just by a little bit but by a lot.” 

Garlinghouse claims more challenging is the fact that the US considers politics over policy, an unfavorable decision for investors. On most occasions, the SEC repeatedly argued that nearly all crypto tokens in the market constitute securities. 

That was why the regulator sued Ripple in December 2020, accusing the firm of offering XRP as an unregistered security. However, Ripple has continued to contest this issue in court with the SEC, hoping to get a favorable ruling soon.

Ripple

The SEC did not only point fingers at Ripple, as it recently came at Coinbase, issuing a Wells Notice alleging possible securities law violation. 

Crypto exchange Kraken suffered the same fate and had no choice but to discontinue its staking services in the US with a settlement of $30 million. 

The SEC claims its moves are to protect Americans from crypto investment risks. However, pro-XRP lawyer, John Deaton, asked the SEC chief, Gary Gensler, to stop claiming to protect the American public against crypto.

These regulatory actions have attracted reactions from industry figureheads, including Cardano founder Charles Hoskinson. Hoskinson urged crypto enthusiasts to support pro-crypto policies in the next elections to stop regulatory issues.

Featured image from Pixabay and chart from TradingView

Posted on

This Report Suggests Crypto Sector Bearing A Final Flush-Out

The crypto market is currently undergoing a series of unfortunate events. From the crash of stablecoin Terra to the fall of Celsius, it has been a gloomy year for crypto investors.

More recently, the capitulation of the Bankman-Fried-led popular exchange FTX has further amplified this negative trend. In addition, exchanges like Gemini and Coinbase have laid off a significant chunk of their workforce.

According to Glassnode reports, the collapse of FTX has led to one of the largest; deleveraging events in the history of crypto. As a result, the market has dipped in recent weeks. Glassnode emphasized the size of losses felt by all market players in the deleveraging event.

In the long term, this forced-priced flush-out might prove beneficial to the prices of assets. However, Glassnode also believes that a capital reset is at hand.

How Is The Crypto Market Faring?

With current events, the crypto market has pulled back 1.1%. The total market capitalization stands at $892 billion. With the fear and uncertainty high in the market, resistance levels will be tough to break through for any asset.

Most altcoins have maintained neutrality today- neither posting significant gains nor losses. Bitcoin is close to the $17,000 level retracing from $17,400 in less than 24 hours; Ethereum has pulled back 2%, retreating to the $1,266 level. The crypto market is generally downtrend today with a reduction in market capitalization.

Record Breaking Capitulation

Two massive capitulations reshaped the crypto space in 2022. The events; occurred in June and November. The FTX saga led to a loss of $4.43 billion in one day. Terra’s capitulation caused a deficit of $700 million in 14 days as investors withdrew their capital in droves.

Glassnode compared the ratio of realized profits to realized loss, with the latter outstripping the former. As per the data, these losses were fourteen times larger than the gains in the market.

According to historical data, previous ratio lows of similar effect occurred at the cycle of bottoms. Again, this pattern was observed – in the 2011,2015, and 2018 bear markets.

After these significant losses, a trend shift occurred after each bear market – leading to a bull market in all three years.

Glassnode stated that the size of the losses had reduced in recent weeks after the crypto flush-out. The prices will likely consolidate – in the coming months before a significant trend reversal.

This Report Suggests Crypto Sector Bearing A Final Flush-Out

Cryptocurrency market trades sideways | Source: Crypto Total Market Cap on TradingView.com

According to CNBC’s Jim Cramer, investors need to cash out on crypto while they can. However, with the recent event that has created a negative impression on crypto investment, Cramer emphasized that the decision be made sooner rather than later. How investors will react to the flush-out, and its resultant effects remains a mystery.

Featured Image From Pixabay, Charts From Tradingview.com

Posted on

Crypto Market Trades Sideways As The Inflation Fear Kicks In, What’s Ahead?

The past week brought hope and confidence to lots of crypto participants. This is due to the growth seen in most major cryptocurrency tokens as they witness some price increase. However, happy days seem to be cut short suddenly as prices twist in reverse.

The last 24 hours have thrown the crypto market into a confusing state and tension as prices dip. Some crypto experts are afraid that increasing inflation could lead to another period of bear markets. Most of the leading crypto assets are experiencing a downward climb after rising considerably in last week’s space.

Bitcoin price has dropped beneath the $23,000 level again. It’s currently trading around $23,0760 after it had climbed up to $24,500. Ethereum is not doing any better as its price got to $1,570 from $1,764. However, it has shown a slight price rally to be at $1,688 currently. There are also price losses for Ethereum Classic and Cronos.

Trivariate’s founder and CEO, Adam Parker, during an interview with CNBC, pointed out that CPI is contributory to the present situation. Parker stated that CPI is likely to keep its high position.

According to Parker, he’s yet to notice any supportive intent from the Fed. He further observed that the housing market is experiencing a surge in rent by up to 12% annually.

CPI Plays A Vital Role In Crypto Market Trend

The Consumer Price Index (CPI) is a vital indicator that the Fed uses in gauging inflation. But some experts have no confidence in the index due to its lagging nature. To them, it would take quite a long time for CPI is ease up. Usually, CPI must get below 2 for a significant price rally for both crypto and stock markets. However, this could only happen with a massive recession.

Other experts have different opinions concerning the pending events. For Chris Toomey of Morgan Stanley, inflation is yet to peak. According to him, the global GPD is creating more concern. Hence, the current inflation is becoming structural instead of transitory.

The impact of inflation rise could be quite drastic on the prices of cryptocurrencies. The Federal Reserve has been trying to control its influence by using hikes in interest rates and quantitative tightening. In June, cryptocurrency was thrown into a bloodbath as the Fed inflicted a 75 bps raise in rates.

Total Crypto market surges by 2% on the chart | Source: Crypto Total Market Cap on TradingView.com

As the July CPI displayed rising inflation, the crypto market showed no significant drop. Some experts explained that the market had previously partaken of bad CPI data followed by an increase in interest rates.

Several players anticipate the positive turning of the CPI value in August with a course reversal from the Fed. Any contrary condition would likely push the crypto market into a bearish trend.

Featured image from FX Empire, Chart from TradingView.com

Posted on

Binance’s CZ: High Inflation And Recession Fears Will Drive Bitcoin Adoption

It’s safe to say CZ is bullish on bitcoin and crypto’s future. Changpeng Zhao visited CNBC’s Squawk on the Street and flipped the prevalent bearish narrative on its head. In less than 2 minutes. Most of the things CZ said are based on common sense and a basic understanding of market forces, but still, it’s calming to hear a leader of the industry saying them. Especially in this fear-ridden stage of the cycle we’re in.

.@binance CEO @cz_binance: The macroeconomics situation will be high inflation, the talk about recession…all of those things drive adoption into #Bitcoin.@CNBC pic.twitter.com/EP8OHwPeAa

— Squawk on the Street (@SquawkStreet) July 28, 2022

Notice that even though Binance’s business is dependent on altcoins’ performance, especially BNB, CZ makes a clear distinction between bitcoin and crypto in general. On the other hand, even though the interview is about bitcoin, CZ sneaks crypto here and there. 

In any case, let’s analyze what Binance’s CEO thinks about the current market conditions and the future of bitcoin and crypto.

What Did CZ Squawked On US National TV?

The first thing the interviewer was interested in was the way that bitcoin bulls have defended the “20Kish” line. According to CZ, that was “the last peak” so there’s a “psychological barrier” there. So far, bitcoin’s price had never go lower than the previous cycle’s all-time high. This time it was different, probably because of Tesla’s paper hands and the Terra collapse. However, the market ended up defending the 20K line.

The interviewer then asked about other factors, like the increase in money supply or bitcoin’s correlation to Nasdaq. According to CZ, those are two relevant factors, but in the end “it’s a mass psychology market” and the last ATH is the barrier. It’s only fair that we quote Binance Academy for an explanation of the psychology of market cycles:

“In short, market sentiment is the overall feeling that investors and traders have regarding the price action of an asset. When the market’s sentiment is positive, and prices are rising continuously, there is said to be a bullish trend (often referred to as a bull market). The opposite is called a bear market, when there is an ongoing decline in prices.”

Recently, as we regularly do here at NewsBTC, we checked on the famed fear and greed index for insights into the current market sentiment. This is what we found:

“Last week, the indicator’s value had risen up to even 34 as the coin’s price saw a recovery rally. However, as the run ended and the crypto once again slumped down, so did the sentiment among the investors.

The report notes that this trend indicates participants in the BTC (and wider crypto) market believe that this recent rally was just a fakeout.”

BNB price chart on BinanceUS | Source: BNB/USD on TradingView.com
What’s the next catalyst?

Back to the interview, the next question was about what factor could catapult bitcoin and crypto into their next chapter. Cautiously, CZ said that no one can forecast that accurately. “Nobody really forecasted NFTs, DeFi, etc. Which probably drove the last bullrun.” And in 2017, ICOs seemed to be the catalyst. “Six months before those things happened, very few people can forecast it.”

In bull markets, exercise risk management.

If everything went to 0, will your life still be ok? If no, you invested too much. Reduce it by half and ask again.

Don't over invest. (Not financial advice)

— CZ Binance (@cz_binance) July 29, 2022

Then and only then, CZ speculated. He thinks that the market is so much bigger this time around, with so many new applications being developed. The whole space is moving in a positive direction, with most countries adopting regulatory frameworks instead of banning bitcoin and cryptocurrencies. It’s hard not to be bullish in an environment like this, even if the market is still fearful about the prices.

The last phrase is the funniest, and it goes into the current state of the world. “The macroeconomic situation, there’s going to be high inflation, the talk about recession, etc. All of those things drive adoption into bitcoin… into crypto.”

Featured Image: CZ, screenshot from the video | Charts by TradingView

Posted on

Australian Football League Bags $25 Million Sponsorship Deal With Crypto.com

Sponsorship deals have become part of the measures that crypto-related companies employ in widening the knowledge and acceptance of cryptocurrency, one of the recent deals in the Australian Football League (AFL) and Crypto.com.

Most of these sponsorships have been on sporting teams, with more football and basketball.

This deal comes as the number 1 primary crypto sports sponsorship for AFL as this deal with Crypto.com will be backing its women’s league (AFLW).

The sponsorship deal, about $25 million, is expected to last for five years. It depicts an increase from the current $18.5 sponsorship contract AFL has with Toyota.

Related Reading | Solo Ethereum Miner Hits The Jackpot With 170 ETH For Mining A Block

This Crypto.com partnership with AFL represents its first sponsorship for an Australian sports team. Also, it stands as the initiating move from the crypto exchange in supporting an elite women’s sports competition globally.

Reacting to the milestone created by the sponsorship, Kylie Rogers confirmed that she is proud to be a part of it.

The general manager said that the AFL is proud of receiving the honor as the first Australian Sports league and the global elite women’s competition to partner with Crypto.com. She stressed their excitement in working with a company with the same passion. And for the progress and sustainability of elite sports and technology.

Reason Behind Sponsorship Deal With Crypto.Com

Karl Mohan, the general manager of Asia and Pacific of Crypto.com, is on his part. He revealed that his company’s attraction came from the high volume of interested women in cryptocurrency.

Mohan stated that their latest research on their Australian customers revealed female investors in cryptocurrencies were over 53%. The general manager mentioned that such a discovery is quite encouraging.

According to Mohan, this indicates that crypto adoption in Australia cuts across all levels without any inhibition from either gender or background. So, Crypto.com is pleased to serve as their beck-on-call platform for any of their crypto-related activities.

In August, a survey from CNBC disclosed that women’s participation in crypto investments is far below half of their male counterparts. The report indicated that while 16% of men were involved, only 7% were recorded.

The Singapore-based crypto exchange, Crypto.com, provides many crypto services to its customers. These include digital wallets, crypto-backed debit cards, and others.

In addition, the crypto exchange has had several sponsorships deals from sports brands within the past few months which amounts to more than $1.5 billion.

Related Reading | Bitcoin Implied Volatility Plummets To Pre-Bull Market Levels: What This Means

Crypto.com, in June ending, bagged a $100 million sponsorship deal with Formula 1. This was followed closely with its July partnership with the UFC worth over $175 million.

Furthermore, mid-November saw the company with a new agreement of renaming the Staples Center in Los Angeles to the Crypto.com Arena. The deal worth over $700 million is expected to cover the next 20 years.

The total crypto market cap stays below $2 trillion | Source: TradingView.com
Featured image from Pixabay, chart from TradingView.com