With the latest halving now about six months behind us, the market could remain in an upward trajectory for another 6 to 12 months if past patterns hold true, according to analysts at Piper Sandler.
Analysts also discussed the potential impact of Bitcoin halving cycles on Robinhood Markets (NASDAQ:HOOD), suggesting that the crypto and stock exchange could experience increased retail engagement and transaction volumes.
Analysts see the stock as a “good way to play this crypto bull market,” citing its “significant runway to scale its crypto operations alongside an already established cash equity & options brokerage business.”
In the past week, Robinhood expanded its cryptocurrency offerings by relisting Solana (SOL), Cardano (ADA), and Ripple’s XRP token, alongside the introduction of the memecoin PEPE.
These tokens, except for PEPE, had been previously delisted due to SEC lawsuits but have now returned to Robinhood’s trading platform. This move to enhance its crypto offerings is part of Robinhood’s strategy to capitalize on the current bull market in cryptocurrencies.
In the last two Bitcoin halving cycles, crypto prices surged significantly and did not peak until well over a year post-halving. As of Friday, November 15, Bitcoin was only 210 days post-halving and had risen 43% above the previous cycle’s peak price.
Analysts identify several factors that could support the continued demand and adoption of cryptocurrencies, including a potentially more favorable regulatory environment and speculation about the US establishing a Bitcoin reserve.
For Robinhood, analysts project that the platform could see approximately a 40% sequential increase in its crypto volumes in the first half of 2025 compared to the second half of 2024. This forecast is based on the assumption that the current Bitcoin cycle will mirror previous ones.
Analysts point out, though, that Robinhood was one of the only platforms that offered DOGE trading in the first and second quarter of 2021, which likely “drove much of the outsized volume growth in those quarters.”
“So while we don’t expect HOOD to produce $233B of volumes in a single quarter anytime soon, we expect volumes to grow ~40% in 1H25 vs. 2H24,” analysts added.
They expect nearly half of this growth to be driven by the newly added tokens and increased volume in existing ones.
Source: Cryptocurrency - investing.com
