Coinbase Q4 Earnings Are Positive After Donald Trump Win
SUMMARY:-
- In expert, views say that coinbase to report rapid and strong growth in both subscription & services and transaction revenue for the 4th quarter of 2024
- 112% increase in trading volume across top exchanges of both Bitcoin and Ethereum because of Donald Trump’s presidential win in the USA
- In hard challenges in the crypto market coinbase is likely to gain 37% revenue growth over it’s all its competitors
In the 3rd quarter of 2024, coinbase missed its revenue targets but in the 4th quarter, Coinbase is expected to come back with a very strong performance in the 4th quarter.
Analysts are showing hope for the company’s transaction and subscription revenue growth, especially Bitcoin and Ethereum both coins to rise in price and trading volume by around 112%. Bitcoin and Ethereum both increased by 48% and 28% respectively in the 4th quarter of 2024.
This growth fueled a rally across the crypto market. Experts say that momentum follows Donald Trump’s presidential win. Traders also hoping for a U.S. strategic Bitcoin reserve.
Coinbase Trading Volume on Rise
Coinbase stands to benefit from this rise as trading volume jumped on centralized exchanges, pressuring analysts to revise their forecasts of revenue growth.
The market’s projection of a 37% increase in Coinbase’s transaction revenue is likely to revert, increasing the possibility of an earning beat. According to experts Coinbase is expected to report earnings of $0.87 per share for the 4th quarter, a 16% decrease from the previous year.
However, revenues are expected to reach 1.59 billion dollars, making a 67% increase.
Analysts have adjusted the general agreement estimate down slightly by 1% over the past month. Except this subscription and service revenue is expected to reach 575.4 million dollars by growing by 53% while transaction revenue may get 934.2 million dollars up by 77%.
In last year transaction consumers were 7 million but analysts predict that monthly transaction users are expected to cross over 8 million users. While Coinbase’s outlook looks positive, the story is different for some of its crypto peers.
The company target an annual revenue of around 123 million dollars but the company’s Total revenue of 120.7 million dollars just falls short of the target. That’s why the company also reported a loss of 3.20 dollars per share.
What Next for Bitcoin and the Crypto Market
Bitcoin has been trading in a tight range of $90,000 to $106,000 area from the last one month and we are on the verge of a breakout in either direction. Bitcoin and global markets are facing price suppression because of Donald Trump’s new tariff policies. There is a high chance that Bitcoin will again reclaim the $100,000 key level and we see some positive move in the upward direction.
The global tension between China and the USA will impact the crypto market as well as the global stock markets. The total crypto marketcap is now at $3.17 Trillion and dropped from the high of $3.75 Trillion since the inauguration of President Donald Trump (20 January 2025). Bitcoin’s dominance keeps rising and now it covers more than 60% of the total crypto marketcap.
