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Highlights of the crypto market news today
Robinhood (ticker HOOD), the commission-free brokerage firm, just reported its Q3 earnings on Wednesday, showing that individual traders' demand for crypto trading remains strong, although trading volume has slowed down this year. Crypto trading volume increased 112% year-over-year to $14.4 billion, while stock trading volume grew 65% to $286.2 billion. However, crypto trading volume has declined from $21.5 billion in Q2 and $36 billion in Q1 this year.
Robinhood's trading revenue grew 72% year-over-year to $319 million, with crypto contributing $61 million (up 165%), options contributing $202 million (up 63%), and stocks contributing $37 million (up 37%). Despite the growth, crypto revenue has declined from $81 million in the prior quarter. The company's Assets Under Custody (AUC) increased 76% year-over-year to $152.2 billion, driven by continuous net deposits and appreciation in stocks and crypto. AUC includes the total value of stocks, options, crypto, and cash in users' accounts, minus users' outstanding obligations.
Robinhood reported Q3 earnings of $0.17 per share, in contrast to a loss of $0.09 per share in the same period last year. Quarterly revenue reached $637 million, slightly below the $650.67 million forecast. "Q3 was another successful quarter as we grew revenue 36% year-over-year and largely translated that into net income," CFO Jason Warnick said.
"We've started 2024 with a goal to continue delivering profitable growth, and we're excited to have set new records for both revenue and EPS versus the prior year." Earlier this month, Robinhood confirmed it will expand support for Bitcoin and Ether in its future products, along with the broad rollout of advanced trading tools on the platform. Just this week, the company also introduced event contracts, allowing users to bet on the outcome of the U.S. presidential election.
BingX Bitcoin Chart
Bitcoin 1D chart on 31/10/2024 | Source: TradingView & BingX
Bitcoin has not reached a new All-Time-High, but several Bitcoin price indicators suggest BTC has the potential to set a new record high. From October 27 to 29, Bitcoin surged 9.7%, reaching a peak of $73,575, before correcting and testing the $71,500 level on October 30. Despite the correction, many indicators, including derivatives market activity, on-chain data, and stablecoin demand, still point to a solid foundation to maintain the uptrend above $73,000 in the near term.
Additionally, the premium of Bitcoin Futures Contracts, an important indicator measuring the demand for leveraged trading, shows strong optimism from bullish investors. In a neutral market environment, monthly Futures Contracts typically have an annual premium of 5% to 10% to compensate for the longer settlement period. Currently, the 13% premium is at the highest level in over four months, showing no signs of weakening despite Bitcoin's rejection at $73,575.
Bitcoin's price action has closely followed that of gold, which reached a new All-Time-High of $2,790 on October 30 but subsequently lost momentum. The decline in gold prices is partly due to recent macroeconomic data, such as the U.S. private payroll report on October 30, which showed an addition of 233,000 jobs in October.
On the same day, the U.S. Bureau of Economic Analysis reported a 2.8% Q3 GDP growth, slightly lower than the previous quarter's 3%. This economic recovery reduces the likelihood of the Federal Reserve aggressively cutting interest rates, which in turn diminishes the immediate demand for alternative assets like gold and Bitcoin. Furthermore, a strong economy does not necessarily drive increased demand for U.S. Treasuries. As fiscal deficits raise concerns, the cost of refinancing government debt has risen, with the 5-year U.S. Treasury yield increasing from 3.5% to 4.1% over the past month.
The current support level is $70,000, and the resistance level is $74,000.
Disclaimer: Readers should conduct their own research before engaging in any transactions. BingX is not directly or indirectly responsible for any damage or loss caused by or claimed to be caused by the use of or reliance on any content, goods, or services mentioned in the article.
