The cryptocurrency market is experiencing a significant downturn, with major exchanges such as Robinhood and Coinbase leading the decline. This comes after Robinhood reported a 47% drop in crypto-related revenue, sparking concerns about sluggish demand for crypto trading. As a result, Robinhood's stock plummeted by nearly 14%, while Coinbase and Bullish saw declines of 8%. Other notable players, including Gemini, Riot Platforms, and MARA, also experienced substantial losses.
The decline in crypto stocks far exceeded the modest 0.5% drop in bitcoin's price over the past 24 hours. The rejection of Iran's proposal by President Trump has added to the pressure, causing oil prices to surge 6% and raising concerns about the potential disruption to energy supply chains in the Middle East.
Meanwhile, the US stock market is seeing modest losses, with the Nasdaq down 0.35%. The market is awaiting the outcome of the Federal Reserve meeting, which is expected to provide clues about the future direction of interest rates. Additionally, several major tech companies, including Alphabet, Amazon, Meta, and Microsoft, are set to report their earnings, which will be closely watched for insights into their artificial intelligence-related spending.