The cryptocurrency market is experiencing a downturn, with crypto-related stocks plummeting on Wednesday, particularly exchanges, following Robinhood's earnings miss and escalating US-Iran tensions. Robinhood, a digital broker with a strong crypto presence, saw its stock drop nearly 14% after reporting a 47% decline in crypto-related revenue for the first quarter. This weakness has spread throughout the sector, with investors interpreting it as a sign of sluggish crypto trading demand.
US crypto exchanges Coinbase and Bullish, as well as Gemini, have all seen significant declines, with Bitcoin miners Riot Platforms and MARA also experiencing losses. The declines in crypto stocks have been more pronounced than those in crypto prices themselves, with Bitcoin edging below $76,000. The pressure has been exacerbated by President Trump's reported rejection of an Iranian proposal to end the naval blockade and open the Strait of Hormuz, a critical global oil shipping route, leading to a 6% surge in oil prices. Meanwhile, US stocks are posting modest losses, with the Nasdaq down 0.35%.
The afternoon session is expected to bring more catalysts, including the Federal Reserve meeting results and earnings reports from major tech firms.