The cryptocurrency market is experiencing a downturn, with crypto-related stocks taking a significant hit on Wednesday. This decline is largely attributed to Robinhood's disappointing earnings report and escalating tensions between the US and Iran. Robinhood, a digital brokerage firm known for its crypto-friendly services, saw its stock price plummet by nearly 14% after reporting a 47% decline in crypto-related revenue for the first quarter.
This weakness has extended to other companies in the sector, with US crypto exchange Coinbase and institutional-focused exchange Bullish both experiencing an 8% decline. Gemini, an exchange business owned by billionaire investors Cameron and Tyler Winklevoss, also dropped by 6%.
Bitcoin miners Riot Platforms and MARA saw their stock prices slide by 6-7%, while Strategy, the largest corporate bitcoin owner, was down 4%. The decline in crypto stocks was more pronounced than the decline in crypto prices themselves, with bitcoin edging below $76,000, down 0.5% over the past 24 hours. The rejection of Iran's proposal by President Donald 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. The US stock market is experiencing modest losses, with the Nasdaq down 0.35%.
The afternoon session is expected to bring more catalysts, including the results of the Federal Reserve meeting and the earnings reports of major tech firms such as Alphabet, Amazon, Meta, and Microsoft.