The cryptocurrency market is experiencing a significant downturn, with crypto-related stocks taking a substantial hit, particularly after Robinhood reported a 47% decline in crypto revenue. This has led to a ripple effect, with major exchanges such as Coinbase and Bullish witnessing an 8% decline, while Gemini fell by 6%. The impact has also been felt by bitcoin miners Riot Platforms and MARA, which slid by 6-7%.
The largest corporate bitcoin owner, Strategy, saw a 4% decline. The rejection of Iran's proposal by President Trump has added to the pressure, causing oil prices to soar by 6%.
The global oil shipping route, Strait of Hormuz, remains a critical point of contention, with the US maintaining its naval blockade until a broader nuclear deal is reached. The news has sent shockwaves through the market, with the West Texas Intermediate topping $100 a barrel. Meanwhile, US stocks have posted modest losses, with the Nasdaq down by 0.35%. The market is eagerly awaiting the Federal Reserve meeting results and the earnings reports of major tech firms, including Alphabet, Amazon, Meta, and Microsoft, which will provide valuable insights into the future direction of the market.