Robinhood (HOOD) Faces Decline in Cryptocurrency Trading Revenue Amid Market Pullback, JPMorgan Analyst Warns

On April 30, COINOTAG News reported that JPMorgan analyst Kenneth Worthington flagged potential challenges for Robinhood’s (HOOD) **cryptocurrency trading** revenue stability. The platform, poised to unveil its first-quarter earnings post-market on May 1, may witness a significant contraction in digital asset trading volume, which surged by **700%** in the previous year’s last quarter. The anticipated drop in quarterly **cryptocurrency trading** volume is noteworthy, with forecasts indicating a slide from $71 billion to approximately $52 billion amid a broader market pullback.

Moreover, the **Assets Under Custody (AUC)** are expected to decline by **5%**, amounting to $183.3 billion quarter-over-quarter, although still reflecting a robust **41% year-over-year growth**. Analysts suggest the momentum from the retail buying frenzy, driven by U.S. tariff policy in early April, may not suffice to counteract the anticipated downturn. Additionally, a lack of interest in **margin and derivative trading** could further suppress Robinhood’s **financial performance**. Consequently, JPMorgan retains a “Neutral” outlook, adjusting its target price to $44, indicating a potential **10% downside** from the current share price of $49. (Source: CoinDesk)