Prediction Market Contracts Offer New Opportunities for Crypto Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: NASDAQ.COM
- Market Overview: Over the past 90 days, only 12 of the top 100 cryptocurrencies have seen gains, with many, including Bitcoin, down over 25%, presenting significant challenges for crypto investors.
- New Investment Method: Prediction market contracts, as an emerging financial derivative, allow investors to predict the future price of specific cryptocurrencies or the outcomes of industry events, providing a potential way to profit in a down market.
- Increased Platform Competition: The entry of new platforms like Robinhood and Coinbase intensifies competition in the prediction market space, potentially attracting more investors to this burgeoning market.
- Risk Warning: Although prediction market contracts are regulated by the CFTC, their novelty and complexity mean investors must proceed with caution, understanding the similar risk characteristics they share with futures and options contracts.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HOOD is 156.24 USD with a low forecast of 130.00 USD and a high forecast of 181.00 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.
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 101.240
Low
130.00
Averages
156.24
High
181.00
Current: 101.240
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is creating a financial services platform for everyone, regardless of their wealth, income, or background. It uses technology to provide access to the financial system. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Its Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. Its self-clearing system, order routing system, data platform, and other back-end infrastructure deliver the capabilities that allow its customers to focus on investing, saving and spending.
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.
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Prediction Markets Offer New Opportunities for Crypto Investors
- Market Performance: Over the past 90 days, only 12 of the top 100 cryptocurrencies have shown gains, with Bitcoin (BTC) down over 25%, presenting significant challenges for investors.
- New Investment Method: With Robinhood and Coinbase entering the prediction market space, investors can profit in a down market by engaging in prediction market contracts that forecast specific cryptocurrency prices or industry events.
- Trading Flexibility: Investors have the ability to trade contracts during their duration, allowing for minimal profits before expiration, which transforms prediction market investments from a zero-sum game into a more dynamic trading opportunity.
- Regulatory Assurance: While prediction markets may appear akin to gambling, major platforms are regulated by the Commodity Futures Trading Commission (CFTC), with prices set by investors, resembling the trading of financial derivatives and offering a novel investment avenue.
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