Bitcoin price drops 7% to $ 58,400

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Valkyrie CEO Leah Wald discusses the use of bitcoin as an inflation hedge on “Make Money with Charles Payne”

Bitcoin was trading down 7% on Wednesday morning.

The price was around $ 58,400 per coin, while rivals Ethereum and Dogecoin were trading at around $ 3,900 and 22 cents per coin, respectively, according to Coindesk.

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Robinhood shares fell about 10% in pre-market trading after the trading platform fell short of earnings expectations as its cryptocurrency income fell from its second quarter record.

Ticker Security Last Change Change% HOOD ROBINHOOD MARKETS, INC. 39.57 +0.56 +1.44%

The shares were around $ 36.10 after the results were released, below the $ 38 they were listed at when the company went public in July.

Robinhood said its crypto revenue fell to just $ 51 million in the third quarter, from a record high of $ 233 million in the second quarter, according to Coindesk.

The decline in crypto trading activity has resulted in a significant decrease in new funded accounts and a drop in income, according to the company.

Total revenue for the quarter was $ 365 million, missing the Street estimate of $ 437.1 million, according to FactSet. The company reported an adjusted net loss of $ 2.06 per share, against analysts’ expectations of a loss of $ 0.67.

In other cryptocurrency-related news, payments giant Visa Inc.’s profits surged in its most recent quarter, driven by consumers and businesses returning to spend on their credit and debit cards after pandemic, the Associated Press reported.

Ticker Security Last modification Modification% V VISA, INC. 231.82 -2.06 -0.88%

During a call to investors, Al Kelly, CEO and Chairman of Visa, said that the growth of cryptocurrencies will also benefit Visa’s profits, as cryptocurrency investors will need to transfer money from a traditional bank account to a third-party service to buy Bitcoin and other coins. While Visa’s bread and butter will always be credit and debit cards, Kelly said, he sees his network as a “single point of connection” between cryptocurrencies and traditional sources of money.

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The San Francisco-based company said on Tuesday it earned $ 3.58 billion in its fiscal fourth quarter that ended Sept. 30, or $ 1.65 per share. That was up from earnings of $ 2.14 billion, or 97 cents a share, in the same period a year earlier.

Excluding one-time adjustments, Visa gained $ 1.62 per share, up 42% from the previous year. Analysts were expecting $ 1.55 per share, according to FactSet.

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