Bitcoin Stabilizes at $64K, Revolut Launches Crypto Exchange

Key Takeaway

• Bitcoin stabilizes in the $63K-$64K range, showing recovery from last week's drop below $57,000.
• Robinhood likely to win against SEC in court over digital asset listings, with a decision expected by late 2025.
• Revolut launches its own crypto exchange, Revolut X, offering competitive fees to attract professional traders.

Bitcoin Stabilizes Above $60,000

Bitcoin has shown resilience, stabilizing between $63,000 and $64,000 during the Asian and European mornings on Tuesday. This marks a significant recovery from the previous week's dip below $57,000, with the cryptocurrency managing to hover comfortably above the $60,000 threshold. Despite a slight retreat from Monday's peak of approximately $65,500, Bitcoin's price at $64,114 indicates a stable position, reflecting a 10% increase since the beginning of May. This recovery follows a 16% decline in April, showcasing the volatile nature of the crypto market. The broader digital asset market, however, experienced a 1.33% drop, as indicated by the CoinDesk 20 Index (CD20).

Legal and Market Developments

Robinhood, known for its conservative approach to digital asset listings, faces a surprising Wells Notice from the U.S. Securities and Exchange Commission (SEC). Broker KBW suggests that Robinhood has a strong chance of prevailing in a potential court battle due to its stringent listing standards. However, clarity on the outcome may not emerge until late 2025. Meanwhile, digital bank Revolut has launched its new crypto exchange, Revolut X, targeting professional cryptocurrency traders with competitive fees, including zero fees for trade makers and 0.09% for takers. This move positions Revolut among the first banks to establish a standalone crypto exchange, aiming to attract users with lower fees compared to its app.

Market Sentiment and Institutional Interest

The crypto market has witnessed a strong rebound, with Bitcoin nearing $65,000 and erasing the losses from the previous week. This surge is attributed to a bullish sentiment following Federal Reserve Chairman Jerome Powell's announcement ruling out further tightening or rate hikes. The Grayscale Bitcoin Trust (GBTC) reported its first daily inflow in almost four months, signaling a positive shift in investor sentiment. Additionally, the options market has seen increased demand for Bitcoin call options, with traders betting on the cryptocurrency reaching new highs, potentially surpassing $75,000 and even aiming for $100,000.

Street Views

• KBW Analysts (Neutral on Robinhood):

  "Our preliminary view is that HOOD would likely fight the SEC in court and has a higher likelihood to prevail than most U.S. competitors (if put in similar situations) given HOOD’s stricter listings standards."