US bank Goldman Sachs shared that it is quite optimistic about the fourth-quarter earnings of cryptocurrency trading platforms.
According to the report by Sachs, revenues of Coinbase may have increased by 62% and Robinhood by 18% compared to the previous quarter.
Under this expectation of Goldman Sachs, the new ATH and retail investor interest in Bitcoin in the 4th quarter were effective.
The following statements were used in the statement made by the bank:
Coinbase
Large volumes in Shiba Inu during the quarter are indicative of strong retail trading volumes. We continue to view Coinbase as a “blue-chip path to exposure to the crypto ecosystem.”
Robinhood
We expect a breakthrough due to improved retail activity rates and higher crypto volumes. We remain cautious on fundamentals. The final performance sets a relatively low bar. If the company can bounce back to positive account growth, we think stocks could be ready for a relief rally.
Silvergate Capital
Noting that the company’s quarterly update showed strong growth with an average deposit balance of $12.9 billion through November 30, we anticipate a “solid top line hit.” We’re seeing less alpha bullish and expect shares to trade more with a crypto beta. We think risk is upside at current levels, with ~48% increase to $190 price target.
*Not Investment Advice.