Key Takeaways

• Banks are pushing for a broad ban on all financial and non-financial benefits tied to holding payment stablecoins.
• Crypto firms, including Coinbase and Ripple, rejected the proposals, warning they would stifle competition.
• Treasury Secretary Scott Bessent faces a hard deadline of July 2026 to finalize GENIUS Act implementation rules.

Robinhood (HOOD) shares slumped 10% in early trading on Wednesday after fourth-quarter revenue missed estimates, with a decline in crypto trading impacting results.

The popular trading app reported fourth-quarter earnings per share of $0.66, beating expectations of $0.63. However, revenue came in at $1.28 billion, below the $1.33 billion analysts had forecast.

A downturn in crypto trading weighed heavily on results, with crypto revenue dropping 38% year over year to $221 million.

Wall Street bank JPMorgan cut its price target on Robinhood to $113 from $130 following the softer-than-expected fourth quarter, while maintaining a neutral rating and warning that tougher 2025 comps raise the bar for 2026.

That new price target still represents potential upside of more than 50% from the current price of $76.50.

Transaction revenue of $776 million fell short, driven by a drop in crypto revenue to $221 million amid a late-year slide in digital asset markets. Net interest revenue of $411 million also missed the bank’s estimates, pressured by weaker securities lending and lower yields.

While January volumes have improved year over year, the bank’s analysts, led by Kenneth Worthington, said growth is moderating across key metrics, prompting the bank to trim top-line forecasts and lower its price target.

Compass Point’s Ed Engel took a more constructive view, though also cutting his price target to $127 from $170 while reiterating a Buy rating. He noted that Robinhood’s January KPIs showed solid momentum across all segments — including better-than-feared crypto volumes — despite the weak fourth quarter. However, a 9% EBITDA miss, driven by lower securities lending and declining take rates in crypto and options trading, weighed on results.

The most surprising detail, Engel said, was Robinhood’s 2026 operating expense guidance of 18% growth. He expects spending to fund product expansion in areas such as crypto, DeFi, and prediction markets, which could pay off in the second half of 2026. Until then, however, investors may lower EBITDA expectations.

He pointed to internalization of prediction markets, a potential Trump-related user bump, and possible mega-IPOs from SpaceX, Anthropic or OpenAI as longer-term tailwinds.

He also flagged that Robinhood’s crypto take rate declined by 3 bps quarter-over-quarter in the fourth quarter and has fallen an additional 5 bps in so far in 2026 as higher-volume traders make up a larger share of the mix.

Engel: “In the near-term, we could see investors penalize HOOD for the higher spending, but sentiment could rebound by mid-2026 as investment ROIs begin to materialize.”

Read more: Robinhood misses Q4 revenue estimates as fourth-quarter results dinged by crypto slump

Spot Bitcoin ETFs added $145 million, Ethereum saw $57 million inflows, signaling fragile optimism after a sharp crypto sell-off.

Even though they were trading at around $68,000 and $1,980, respectively, at the time of writing, Bitcoin and Ethereum bounced yesterday after sharp sell-offs, with BTC reaching $71,000 and ETH climbing to $2,150 following the resumption of spot ETF inflows.

The rebound renewed speculation that BTC may have established a local floor, but traders are also bracing for today’s Non-Farm Payroll (NFP) report and Friday’s Consumer Price Index (CPI) release, two data points that could reset Federal Reserve rate expectations and determine whether the rally holds.

ETF Flows Turn Positive, But On-Chain Data Signals Volatility Ahead

In its latest market update, digital asset trading firm QCP noted that spot Bitcoin ETFs recorded $145 million in net inflows yesterday, building on Friday’s $371 million. Spot ETH ETFs also reversed course with $57 million in net inflows after three days of red.

The shift follows a period of intense selling pressure that recently drove BTC to around $60,000, its lowest level since before the November 2024 U.S. elections.

Despite the inflows, on-chain data suggests market participants are preparing for continued turbulence. For example, CryptoQuant contributor CryptoOnchain reported that on February 6, over 7,000 BTC moved from Binance to other spot exchanges, making it the second-highest daily volume in the past year.

At the same time, the seven-day moving average of flows from Binance to derivative exchanges spiked to 3,200 BTC, the highest level since January 2024. The analyst interpreted the migration of funds to derivative platforms as a sign that large holders are either hedging downside risk or positioning for sharp price swings.

Meanwhile, QCP market watchers revealed that the Coinbase BTC discount has narrowed from approximately 20 basis points to 9 basis points, signaling a moderation in U.S.-led selling. But the Crypto Fear & Greed Index remains at 9, deep in “extreme fear” territory, with the trading firm describing conditions as “thin ice that happens to be holding.”

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Historical Context and On-Chain Trends

Bitcoin’s correction has drawn the broader market lower, with the OG cryptocurrency dipping below $67,000 and altcoins such as ETH, XRP, and BNB losing significant ground. The total crypto market capitalization has fallen to $2.36 trillion, shedding over $50 billion in daily value. Still, not all assets have mirrored this decline, as the likes of XMR gained 3%, while ZRO entered the top 100 following a 20% surge.

Unlike previous cycles, this downturn has avoided major systemic failures. Chainlink co-founder Sergey Nazarov pointed out on February 10 that real-world assets (RWAs) on the blockchain are expanding despite price volatility, with institutional interest sustained by technological advantages and 24/7 markets.

While the market looks for big economic changes, the increase in ETF investments provides some hope, but QCP warns that past price changes and how derivatives are set up mean traders should be careful and manage risks wisely.

XRP (CRYPTO: XRP) has retraced nearly 63% from its multi-year high of $3.66 to around $1.36 as of Wednesday, a move that market analysts say could carry bearish implications unless buyers reassert themselves. The slide comes amid a confluence of technical signals and growing on-chain activity that could either reinforce a near-term downshift or set the stage for a stubborn reversal. Traders are weighing a technical setup that points toward further pressure against a backdrop of sustained demand from spot XRP ETFs and persistent whale accumulation, painting a nuanced picture for the digital asset’s near-term trajectory. The Gaussian Channel, a charting method used to identify trends and potential support or resistance levels, places XRP at a crossroads where previous patterning has often dictated the tempo of subsequent moves.

Key takeaways

• The price action has broken below a critical zone near $1.40, aligning with a bearish setup that could extend losses toward the $0.70–$1 range if support fails.
• The Gaussian Channel shows the upper regression band near $1.16 and the middle band around $0.70, suggesting that a test of important structural levels could unfold over the coming weeks or months.
• A drop below the local low of $1.12 would validate the bearish scenario described by market technicians, potentially accelerating the downside case.
• Spot XRP ETF inflows have continued, with cumulative net inflows reaching about $1.01 billion and inflows of roughly $3.26 million on a single day, underscoring ongoing institutional interest.
• On-chain activity has picked up, with whale transactions exceeding $100,000 and active addresses surging to a six-month high, signaling that buyers remain engaged despite the price decline.
• Nevertheless, persistent ETF demand and on-chain signals could counterbalance the technical headwinds if liquidity conditions remain favorable and market sentiment improves.

Tickers mentioned: $XRP, $BTC, $ETH

Sentiment: Bearish

Price impact: Negative. A break below key supports could push XRP toward the mid-band around $0.70, extending the downside unless buyers step in.

Trading idea (Not Financial Advice): Hold. Near-term risk remains elevated if $1.12 fails, but renewals in ETF inflows and on-chain activity keep the scene cautiously balanced.

Market context: The XRP market remains closely tethered to liquidity flows from spot XRP ETFs and evolving on-chain activity. Spot XRP ETF inflows have continued, contributing to roughly $1.01 billion in cumulative net inflows and sustaining roughly $1.01 billion in assets under management, with daily inflows of millions that underscore ongoing institutional interest. At the same time, on-chain dynamics have shown resilience, with whale activity and active addresses rising even as price action remains under pressure. These factors collectively reflect a broader environment where ETF-driven demand can offset, at least temporarily, technical headwinds.

Why it matters

For investors watching XRP, the current setup matters because it juxtaposes a stubborn price decline with stubborn liquidity support. The Gaussian Channel’s readings imply that XRP could oscillate within a defined corridor before a decisive breakout or breakdown occurs. If the upper band near $1.16 acts as a temporary ceiling and the price fails to hold above the lower levels, the drawdown could extend toward the $0.70–$1 region, a zone that previously lacked robust testing for sustained support. Such a breach would be meaningful not just for XRP bulls and bears but for funds and institutions tracking the asset as part of broader crypto exposure. The dynamics of ETF flows, as observed in late-2025 through 2026, emphasize that institutional demand can create a buffer against rapid declines, but they are not a guarantee against further losses if macro conditions or sentiment deteriorate.

“The middle regression band currently ties up around $0.70, which is also a previous year-long resistance level seen back in 2023/2024, and hasn’t been backtested for support.”

On the liquidity side, the market has benefitted from a steady stream of ETF inflows. The Canary XRP ETF launch, which began late in 2025, has contributed to a trajectory of inflows that has pushed the cumulative total higher, with the latest daily inflows evidencing continued demand from institutional players. This flow is not a panacea for price declines, but it argues for a more nuanced outlook than a pure technical read would suggest. Meanwhile, on-chain metrics paint an equally important portrait. Analysts have highlighted a surge in XRP activity: whale transactions of over $100,000 and a spike in active addresses have suggested that sector participants remain engaged and are deploying capital despite adverse price movements. These signals can be precursors to a bottom or a renewed uptrend, depending on whether they align with broader market liquidity and risk appetite.

Analysts have also cited the importance of the price level around $1.12. A move below that local low could be a technical confirmation of the bearish scenario, triggering a cascade of downside protections and prompting a reevaluation of risk parity in XRP portfolios. Conversely, if ETF inflows persist and on-chain activity maintains its strength, XRP could find a foundation and attempt a staged recovery as liquidity conditions improve and risk sentiment stabilizes. The tension between price-driven momentum and liquidity-driven demand is a defining feature of XRP’s current phase, and market participants are closely watching both channels for signals of the next major move.

As the market weighs these factors, the broader crypto environment remains cautious. The behavior of BTC and ETH—often a barometer for risk sentiment—has a bearing on how XRP will respond to developing macro cues and regulatory dynamics. Although XRP has decoupled at times from the broader market, the path of least resistance in the near term could be influenced by the balance between selling pressure at technical resistance and fresh inflows that sustain institutions’ appetite for XRP exposure.

What to watch next

• Monitoring XRP’s level relative to the $1.12 local low to gauge whether the bearish scenario gains traction.
• Tracking the Gaussian Channel bands around $1.16 (upper) and $0.70 (middle) for potential testing or breakout signals.
• Observing ongoing spot XRP ETF inflows and AUM, which could widen the collision between technical resistance and liquidity-driven strength.
• Watching on-chain metrics, especially the trajectory of whale transactions and daily active addresses, for signs of renewed accumulation or distribution.

Sources & verification

• Chart Nerd’s analysis on Gaussian Channel fractals and XRP price projections referenced in a social post.
• Discussion on XRP price movement below the 1.60 level and potential downside scenarios.
• Canary XRP ETF launch and the resulting inflow data, including cumulative inflows and daily inflows feeding assets under management.
• Santiment’s reports on whale activity, large XRP transactions, and address activity as a measure of on-chain demand.

Market reaction and key details

The current XRP setup binds a bear-case price scenario to a backdrop of ongoing ETF inflows and active on-chain participation. While the price remains under pressure, the inflows into spot XRP ETFs and sustained whale engagement provide a counterbalancing force that could underpin a bottom if liquidity remains ample and risk appetite stabilizes. The path forward will likely hinge on whether XRP can stabilize above critical support levels and whether on-chain signals translate into durable buying interest.

What to watch next

• Whether XRP can hold above $1.12 on a closing basis, which would delay a deeper pullback.
• How ETF inflows trend over the next several sessions and whether AUM surpasses the $1.05–$1.10 billion range.
• Any new regulatory or product developments affecting XRP ETFs or custodial structures that could influence liquidity and investor confidence.

Africa recorded the highest median stablecoin-to-fiat conversion spreads among tracked regions in January, according to data observed by payments infrastructure company Borderless.xyz, covering 66 currency corridors and nearly 94,000 rate observations.

The regional median spread was 299 basis points, or about 3%, compared with roughly 1.3% in Latin America and 0.07% in Asia. In Africa, conversion costs ranged from about 1.5% in South Africa to nearly 19.5% in Botswana. 

The data measures “spreads,” or the gap between a provider’s buy and sell rate for a stablecoin-to-fiat pair. Similar to a bid-ask spread in traditional markets, it reflects the execution cost paid when converting stablecoins into local fiat currency. 

The findings suggest that while stablecoins are promoted as a cheaper alternative to traditional remittance rails, actual costs vary widely across African markets and appear closely tied to local provider competition and liquidity. 

Competition drives pricing gaps

Borderless.xyz found that markets with several competing providers generally had conversion costs between about 1.5% and 4%. In markets with only one provider, costs often exceeded 13%. 

Botswana recorded the highest median conversion cost in January at 19.4%, though pricing improved later in the month. Congo’s costs were also above 13%. By contrast, South Africa, which has a more competitive foreign exchange market, showed costs of about 1.5%. 

The report suggested that these differences are driven primarily by local market conditions, such as liquidity and competition, rather than the underlying blockchain technology. In countries where multiple providers operate, conversion costs stayed closer to the regional average. 

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Stablecoins versus traditional foreign exchange

The report also compares stablecoin mid-rates with traditional interbank foreign exchange rates, measuring what it calls the “TradFi premium.”

This metric reflects whether stablecoin exchange rates are cheaper or more expensive than traditional FX mid-market rates. 

Across 33 currencies globally, the median difference between stablecoin exchange rates and traditional mid-market foreign exchange rates was about 5 basis points, or 0.05%, indicating the two were largely in line.

In Africa, the median gap was wider at roughly 119 basis points, or about 1.2%, though the difference varied significantly depending on the country.

On Jan. 24, economist Vera Songwe said at the World Economic Forum in Davos that stablecoins are helping reduce remittance costs across Africa, where traditional transfer services can charge about $6 per $100 sent.

The new data adds context, suggesting that while stablecoins offer faster settlement and potential savings compared with legacy services, conversion costs within specific corridors remain elevated.