This Banking App is Bringing Crypto Back – with a Twist

30‑Second Take

Why now? SoFi is making waves this week after confirming it’s bringing cryptocurrency trading back to its app two years after it bowed out of the crypto space.

More importantly, it’s going one better with the addition of cross-border transfers powered by blockchain technology. 

The cross-border transfer utility is especially promising, as it widens SoFi’s appeal and usefulness and could allow for client acquisition in other service areas such as loans.

With SoFi teasing that these are the first of several planned crypto and blockchain innovations, improving its longer-term prospects and setting it firmly on track to be one of the most capable financial services apps in the marketplace.

Trade Setup

Time frame: Swing to medium-term
Edge type: Momentum breakout

Snapshot Table

Chart

5-Day Synopsis: The relaunch of SoFi’s crypto services has given the stock a boost in the most recent trading session. 

It rose to a high of $18.85 in morning trading on Monday (June 30) in the immediate aftermath of the announcement. 

This leap lifted SOFI’s five-day gains to an impressive 21.23% after also making progress in the previous three sessions.

SOFI stock slipped back a little yesterday (Tuesday) but continues to look solid.

Bull Case 

Core thesis: SoFi is a nationally chartered bank offering a range of digital financial services to help people better manage their money and achieve their financial ambitions.

Its financial products currently serve more than 10 million members, across categories including student loans, student loan refinancing, personal loans, checking accounts, credit cards, and insurance.

It’s growing at a lightning pace, with the acquisition of 800,000 new clients in Q1 alone. 

Catalysts: SoFi has reintroduced crypto trading after a two-year hiatus but has come back bigger and better with the addition of a cross-border element.

Its new crypto-enabled capabilities add a new level of utility and relevance to its financial products and take SoFi another step closer to being a one-stop shop for its members. 

Valuation upside: SOFI stock is trading near its top-end valuation of $20. It is comfortably above the average analyst price target of $14.45. The low is $6.

Technical tailwind: Thanks to its crypto-powered surge, SOFI has traded within a few cents of its 52-week high this week and is comfortably above the 50-day moving average, putting it in ‘strong buy’ territory. 

Volumes are up and institutional investment is gathering pace, signaling confidence in this stock’s growth prospects.

The current trend suggests further gains are on the cards with a momentum breakout possible.

Bear Case 

Key risk: While Wall Street has reacted favorably to SoFi’s pivot back into crypto, it’s unlikely that this will be a major source of revenue.

It will likely earn a percentage on the value of each transaction it facilitates, so it remains unclear how much of an impact this announcement will have on the bank’s revenue and profitability.   

Macro/sector headwinds: The financial services sector as a whole is vulnerable to shifts in interest rates and changes in regulation.

If rates continue to run high, SoFi could see a decline in the attractiveness in loan products – a core revenue generator.

The threat of recession due to global political events and trade tariff impacts could also dampen consumer confidence, again lessening demand for loans and credit cards.  

President Trump’s election campaign promises to bring cryptocurrency into the financial mainstream could also come with some legislative growing pains, which could further challenge SoFi. 

Competitive threat: Fintech and digital banking are enormously competitive spaces, and their growing adoption is attracting the attention of major financial institutions.

Larger banks such as Bank of America and Capital One are actively developing their offerings in these areas.

With larger user bases and easier access to capital, their pace of innovation could leave SoFi struggling to keep up. 

Crowded-trade concern: SoFi has consistently beat analyst earnings estimates but this has been a year like no other.

If its Q2 earnings are unable to meet expectations, market sentiment could quickly swing to the negative.

SOFI stock is undeniably promising, but it’s walking a tightrope of interest-rate and policy challenges.

Quick Checklist 

✅ Thesis still valid after today’s close
✅ Volume confirms move above key levels
✅ Catalyst date double-checked (July 1, 2025)

Deep‑Dive Links

• Q1 2025 Earnings Report 

• Analyst Ratings and Price Targets

• Short Interest Data

• Company Profile and Investor Relations

That’s all for today’s Everyday Alpha. We’ll have a new pick for you every morning before the market opens, so stay tuned!

Best Regards,
—Noah Zelvis
Everyday Alpha