Robinhood Markets Inc. (HOOD) shares plummeted 8.57% during Thursday's intraday trading session, reflecting significant selling pressure on the stock.
The sharp decline coincides with a major downturn in the cryptocurrency market, where Bitcoin prices crashed below $70,000 for the first time in over a year, extending losses toward $67,000. Analysts point to a deepening crypto rout, accelerated by massive waves of liquidations and growing institutional caution. Market sentiment was further pressured by concerns that the potential nomination of Kevin Warsh as Federal Reserve Chair could lead to a more restrictive monetary policy, which historically weighs on speculative assets like cryptocurrencies.
Robinhood's business model is heavily reliant on transaction revenue from cryptocurrency trading. When Bitcoin and other digital assets rally, trading activity on the platform typically surges, boosting revenue. Conversely, a severe price decline and shift toward fear in crypto sentiment cools speculative trading activity, directly pressuring Robinhood's revenue expectations and making its stock a leveraged bet on crypto market volumes.
