Smaller crypto investors are reportedly starting to return to retail trading apps like Robinhood and Coinbase as BTC has risen 25% in the past month.
According to a new Bloomberg reportsmall, “mom-and-pop” investors are creeping back into the crypto markets, although not having nearly the same level of involvement as the last bull market.
Both Robinhood and Coinbase published positive earnings reports last week. Specifically, Coinbase announced an increase in revenue and users, and had its first profitable quarter in two years, sending its stock price vertical.
Kyle Doane, a trader at Arca, told Bloomberg:
“There are signs that the retail crowd is starting to come back into the market, but nowhere near the magnitude of the last bull market… Even crypto stocks like COIN and miners are showing more volatility than many tokens.”
According to Owen Lau, analyst at Oppenheimer & Co.,
“We are only at 16% of the last peak retail volume. Now that the money is returning from the bankrupt entities, there is a lot of room to potentially operate.”
Coinbase CFO Alesia Haas also told Bloomberg that the company has seen “good momentum drivers,” noting that the Bitcoin halving, which is scheduled for April and will halve miners’ BTC rewards, has historically resulted in more retail involvement and growth.
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