This inventory is an effective method to play the crypto market bull run, Piper says

Cryptocurrency value cycles have usually revolved round Bitcoin’s “halving” occasions, which happen roughly each 4 years. All through historical past, Bitcoin and different digital property are inclined to expertise value surges within the 12 to 18 months main as much as and following these occasions.

With the newest halving now about six months behind us, the market might stay in an upward trajectory for an additional 6 to 12 months if previous patterns maintain true, based on analysts at Piper Sandler.

Analysts additionally mentioned the potential influence of Bitcoin halving cycles on Robinhood Markets (NASDAQ:), suggesting that the crypto and inventory change might expertise elevated retail engagement and transaction volumes.

Analysts see the inventory as a “good method to play this crypto bull market,” citing its “important runway to scale its crypto operations alongside an already established money fairness & choices brokerage enterprise.”

Up to now week, Robinhood expanded its cryptocurrency choices by relisting Solana (SOL), Cardano (ADA), and Ripple’s XRP token, alongside the introduction of the memecoin PEPE.

These tokens, apart from PEPE, had been beforehand delisted as a consequence of SEC lawsuits however have now returned to Robinhood’s buying and selling platform. This transfer to reinforce its crypto choices is a part of Robinhood’s technique to capitalize on the present bull market in cryptocurrencies.

Within the final two Bitcoin halving cycles, crypto costs surged considerably and didn’t peak till properly over a 12 months post-halving. As of Friday, November 15, Bitcoin was solely 210 days post-halving and had risen 43% above the earlier cycle’s peak value.

Analysts determine a number of elements that would assist the continued demand and adoption of cryptocurrencies, together with a probably extra favorable regulatory setting and hypothesis concerning the US establishing a Bitcoin reserve.

For Robinhood, analysts challenge that the platform might see roughly a 40% sequential enhance in its crypto volumes within the first half of 2025 in comparison with the second half of 2024. This forecast is predicated on the idea that the present Bitcoin cycle will mirror earlier ones.

Analysts level out, although, that Robinhood was one of many solely platforms that provided DOGE buying and selling within the first and second quarter of 2021, which seemingly “drove a lot of the outsized quantity development in these quarters.”

“So whereas we do not anticipate HOOD to supply $233B of volumes in a single quarter anytime quickly, we anticipate volumes to develop ~40% in 1H25 vs. 2H24,” analysts added.

They anticipate almost half of this development to be pushed by the newly added tokens and elevated quantity in current ones.