The cryptocurrency market is experiencing a downturn, with crypto-related stocks declining sharply due to escalating US-Iran tensions and Robinhood's disappointing earnings report. Robinhood's stock plummeted by nearly 14% after the company reported a 47% decline in crypto-related revenue in the first quarter. This decline has had a ripple effect on the sector, with Coinbase and Bullish falling by 8%, and Gemini dropping by 6%. Bitcoin miners Riot Platforms and MARA also saw significant declines, with losses ranging from 6-7%.
The largest corporate bitcoin owner, Strategy, experienced a 4% decline. The pressure on the market was further exacerbated by President Trump's decision to reject Iran's proposal to reopen the Strait of Hormuz, a critical oil shipping route. As a result, oil prices surged by 6%, with the West Texas Intermediate reaching over $100 per barrel.
The US stock market has posted modest losses, with the Nasdaq down by 0.35%. The market is awaiting the results of the Federal Reserve meeting and the earnings reports of major tech firms, including Alphabet, Amazon, Meta, and Microsoft, which may provide insight into the future direction of the AI trade and infrastructure buildout.