Robinhood Reports Crypto Revenue Growth Amid U.S. Economic Challenges
The U.S. economy contracted for the first time in three years, influenced by President Trump's tariffs. Stock prices have also shown the worst performance for a new presidential administration since 1974.
Robinhood’s Q1 results beat analyst expectations, with a notable increase in crypto revenue, which doubled year-on-year. Major tech firms like Microsoft and Meta also exceeded estimates. Bitcoin has outperformed the Nasdaq by 11% since April 2, rising nearly 15% in April as investors view it as a safe haven alongside gold and the Swiss franc.
Upcoming earnings reports from Block, Riot Platforms, Strategy, and Reddit are anticipated. The Ethereum Pectra upgrade is set to activate on May 7, marking a significant development as Ethereum faces competition from more efficient blockchains.
Key observations include:
- The U.S. GDP fell by 0.3% in Q1.
- Bitcoin has maintained resilience amidst weak macroeconomic indicators.
- The ETH/BTC ratio dropped to its lowest in five years.
What to Watch
- May 1: Coinbase Asset Management launches the Coinbase Bitcoin Yield Fund.
- May 1: Hippo Protocol initiates its layer-1 blockchain mainnet.
- May 1: Constellation Network activates Tessellation v3 upgrade.
- May 5: IOTA's Rebased network upgrade begins.
- May 7: Ethereum's Pectra hard fork network upgrade activates.
Market Movements
- BTC up 1.76% at $96,305.26.
- ETH up 2.37% at $1,838.40.
- CoinDesk 20 index up 1.64% at 2,787.00.
Technical Analysis
- Bitcoin consolidating between $93,000 and $95,600.
- Price remains above yearly open, indicating strength.
- Next resistance lies between $96,000 and $98,000.
Crypto Equities
- Strategy (MSTR): closed at $380.11, pre-market at $391.85.
- Coinbase Global (COIN): closed at $202.89, pre-market at $208.75.
- Riot Platforms (RIOT): closed at $7.24, pre-market at $7.52.
ETF Flows
- Spot BTC ETFs: Daily net flow -$56.3 million; Total BTC holdings ~1.15 million.
- Spot ETH ETFs: Daily net flow -$2.3 million; Total ETH holdings ~3.45 million.
Overnight Flows
Chart of the Day
- Stablecoin supply has rapidly increased on Tron and Ethereum.
- Optimism and Avalanche have seen declines compared to layer 1s.