Analysis of Passive Income Methods in Cryptocurrency
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy COIN?
Source: Fool
- Passive Income Methods: Cryptocurrency holders can earn passive income through staking, lending, yield farming, and decentralized finance (DeFi), with platforms like Aave and Compound offering annual percentage yields (APYs) of 4.79% and 3.27%, respectively, highlighting the income potential in the crypto market.
- Staking Rewards: Staking cryptocurrencies such as Ethereum, Solana, and Cardano allows investors to earn rewards for contributing to network security, with the Bitwise Solana Staking ETF potentially offering up to 7% average returns, indicating a growing interest in staking as a relatively safer income method.
- Earnings Comparison: Potential earnings from staking $50,000 on Coinbase show Ethereum's APY at 1.86%, yielding $4,826.23 over five years, which, while notable, still falls short compared to high-interest savings accounts, reflecting the volatility of the crypto market.
- Future Outlook: By 2026, passive income from crypto is expected to rise as ETFs make staking more accessible, although users must carefully check fee structures on platforms, such as Kraken's Auto Earn program, which rewards only half of the staked assets, potentially impacting overall earnings.
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Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COIN is 361.63 USD with a low forecast of 230.00 USD and a high forecast of 440.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
17 Buy
7 Hold
1 Sell
Moderate Buy
Current: 146.120
Low
230.00
Averages
361.63
High
440.00
Current: 146.120
Low
230.00
Averages
361.63
High
440.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the cryptoeconomy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. Its platform helps people and institutions to engage with crypto assets, including trading, staking, safekeeping, spending, and global transfers. It offers products and services to various customer groups: individuals, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime Trading, markets, base protocol and Coinbase wallet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Coinbase Expected to Report Flat Q4 Revenue Amid Market Challenges
- Flat Revenue Outlook: Coinbase is expected to report Q4 revenue of $1.86 billion, nearly flat compared to $1.84 billion in the same quarter last year, indicating market weakness amid macroeconomic pressures.
- Significant Profit Decline: The company is projected to post a 50% drop in quarterly profit, with earnings per share expected to fall to $1.01 from $2.04 a year ago, reflecting a substantial decrease in transaction volumes.
- Analyst Price Target Cut: BTIG has lowered its price target for Coinbase from $420 to $340 while maintaining a ‘Buy’ rating, suggesting that the current share price presents an attractive entry point for investors.
- Weak Bitcoin Market: Bitcoin has seen a sharp decline, currently priced at $68,305, down significantly from its 15-month high, which has intensified investor aversion to riskier assets like cryptocurrencies.
See More
Analysis of Passive Income Methods in Cryptocurrency
- Passive Income Methods: Cryptocurrency holders can earn passive income through staking, lending, yield farming, and decentralized finance (DeFi), with platforms like Aave and Compound offering annual percentage yields (APYs) of 4.79% and 3.27%, respectively, highlighting the income potential in the crypto market.
- Staking Rewards: Staking cryptocurrencies such as Ethereum, Solana, and Cardano allows investors to earn rewards for contributing to network security, with the Bitwise Solana Staking ETF potentially offering up to 7% average returns, indicating a growing interest in staking as a relatively safer income method.
- Earnings Comparison: Potential earnings from staking $50,000 on Coinbase show Ethereum's APY at 1.86%, yielding $4,826.23 over five years, which, while notable, still falls short compared to high-interest savings accounts, reflecting the volatility of the crypto market.
- Future Outlook: By 2026, passive income from crypto is expected to rise as ETFs make staking more accessible, although users must carefully check fee structures on platforms, such as Kraken's Auto Earn program, which rewards only half of the staked assets, potentially impacting overall earnings.
See More
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- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
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- Revenue Model Insight: Robinhood attracts users with zero-commission trading, profiting through payment for order flow and interest on customer cash balances, meaning that increased trading activity in Bitcoin and other assets directly boosts Robinhood's revenue opportunities, further driving stock price growth.
- Current Technical Analysis: Robinhood's stock is currently trading 21.1% below its 20-day simple moving average and 34.7% below its 100-day SMA, indicating a bearish short-term trend; however, shares have increased by 51.48% over the past 12 months, suggesting a potential recovery phase as they approach 52-week highs.
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- Diverging Asset Performance: Assets that were punished during the early 2020s bond bear market are beginning to outperform elite 'Davos' trades, and while this divergence may seem modest, historically it often marks the beginning of regime changes, indicating potential major shifts ahead.
- Capital Expenditure Risks: Hartnett warns that former market leaders face risks in shifting from asset-light to asset-heavy business models, with AI hyperscalers projected to spend $670 billion on capex by 2026, consuming 96% of their cash flow, which will fundamentally alter market dynamics.
- Leadership Rotation Pattern: Hartnett observes that major global events typically trigger long-term shifts in market leadership, predicting that 2025 will be the next inflection point, where U.S. small and mid-cap stocks, financials, regional banks, and REITs will outperform high-valuation tech giants.
See More
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- Flat Revenue Outlook: Coinbase is expected to report Q4 revenue of $1.86 billion, nearly flat compared to $1.84 billion in the same quarter last year, indicating market weakness amid macroeconomic pressures.
- Significant Profit Decline: The company is projected to post a 50% drop in quarterly profit, with earnings per share expected to fall to $1.01 from $2.04 a year ago, reflecting a substantial decrease in transaction volumes.
- Analyst Price Target Cut: BTIG has lowered its price target for Coinbase from $420 to $340 while maintaining a ‘Buy’ rating, suggesting that the current share price presents an attractive entry point for investors.
- Weak Bitcoin Market: Bitcoin has seen a sharp decline, currently priced at $68,305, down significantly from its 15-month high, which has intensified investor aversion to riskier assets like cryptocurrencies.
See More
Analysis of Passive Income Methods in Cryptocurrency
- Passive Income Methods: Cryptocurrency holders can earn passive income through staking, lending, yield farming, and decentralized finance (DeFi), with platforms like Aave and Compound offering annual percentage yields (APYs) of 4.79% and 3.27%, respectively, highlighting the income potential in the crypto market.
- Staking Rewards: Staking cryptocurrencies such as Ethereum, Solana, and Cardano allows investors to earn rewards for contributing to network security, with the Bitwise Solana Staking ETF potentially offering up to 7% average returns, indicating a growing interest in staking as a relatively safer income method.
- Earnings Comparison: Potential earnings from staking $50,000 on Coinbase show Ethereum's APY at 1.86%, yielding $4,826.23 over five years, which, while notable, still falls short compared to high-interest savings accounts, reflecting the volatility of the crypto market.
- Future Outlook: By 2026, passive income from crypto is expected to rise as ETFs make staking more accessible, although users must carefully check fee structures on platforms, such as Kraken's Auto Earn program, which rewards only half of the staked assets, potentially impacting overall earnings.
See More
Molina Healthcare Stock Plummets 29% After Earnings Miss
- Unexpected Quarterly Loss: Molina Healthcare reported an unexpected quarterly loss, causing its stock to plummet 29% in a single day, marking the largest drop since 2012 and indicating significant challenges in profitability.
- Weak 2026 Outlook: The company issued a weak earnings outlook for 2026, which may undermine investor confidence and further pressure the stock price, reflecting market concerns about its future growth potential.
- Strong Overall Market Performance: Despite Molina Healthcare's stock decline, the Dow Jones Industrial Average surged nearly 2% on Friday, reaching a new all-time high, indicating a market preference for value stocks that may overshadow individual stock weaknesses.
- Small Caps Outperform: Small caps showed outstanding performance on Friday, with the Russell 2000 index soaring over 3%, suggesting increased investor confidence in smaller companies, contrasting sharply with Molina's performance.
See More
U.S. Jobs and Inflation Data Set for Release
- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
Robinhood Shares Surge Amid Crypto Market Volatility
- Crypto Market Influence: Robinhood's stock price is closely tied to the cryptocurrency market, with Bitcoin dipping near $60,000 on Thursday before rebounding to $68,000 on Friday, resulting in a 12.70% increase in Robinhood's shares, highlighting its sensitivity to market fluctuations.
- Revenue Model Insight: Robinhood attracts users with zero-commission trading, profiting through payment for order flow and interest on customer cash balances, meaning that increased trading activity in Bitcoin and other assets directly boosts Robinhood's revenue opportunities, further driving stock price growth.
- Current Technical Analysis: Robinhood's stock is currently trading 21.1% below its 20-day simple moving average and 34.7% below its 100-day SMA, indicating a bearish short-term trend; however, shares have increased by 51.48% over the past 12 months, suggesting a potential recovery phase as they approach 52-week highs.
- Market Support and Resistance: The key resistance level for Robinhood is $103.50, while the support level is $81.00; despite the current RSI of 15.26 indicating oversold conditions, the MACD remains below its signal line, reflecting ongoing bearish pressure and a complex market sentiment.
See More
Bank of America Strategist Urges Investors to Favor Main Street Over Elites
- Shift to Main Street: Bank of America's chief investment strategist Michael Hartnett urges investors to back U.S. small and mid-cap stocks, asserting that as inflation cools and political pressures rise, markets are quietly pivoting towards Main Street, which is expected to significantly influence investment strategies.
- Diverging Asset Performance: Assets that were punished during the early 2020s bond bear market are beginning to outperform elite 'Davos' trades, and while this divergence may seem modest, historically it often marks the beginning of regime changes, indicating potential major shifts ahead.
- Capital Expenditure Risks: Hartnett warns that former market leaders face risks in shifting from asset-light to asset-heavy business models, with AI hyperscalers projected to spend $670 billion on capex by 2026, consuming 96% of their cash flow, which will fundamentally alter market dynamics.
- Leadership Rotation Pattern: Hartnett observes that major global events typically trigger long-term shifts in market leadership, predicting that 2025 will be the next inflection point, where U.S. small and mid-cap stocks, financials, regional banks, and REITs will outperform high-valuation tech giants.
See More
