The cryptocurrency market is experiencing a downturn, with exchanges being the hardest hit, following Robinhood's disappointing earnings report and escalating US-Iran tensions. Robinhood, a digital brokerage firm known for its crypto services, saw its stock price drop by nearly 14% after reporting a 47% decline in crypto-related revenue in the first quarter. This decline has had a ripple effect on the sector, with investors interpreting it as a sign of weak demand for crypto trading.
As a result, major US crypto exchanges such as Coinbase and Bullish have seen their stock prices fall by 8%, while Gemini's stock price has decreased by 6%. Bitcoin miners like Riot Platforms and MARA have also experienced a decline of 6-7% in their stock prices. Additionally, Strategy, the largest corporate owner of bitcoin, has seen its stock price drop by 4%. The decline in crypto stocks is 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 the Iranian proposal by President Trump has added to the pressure, leading to a 6% surge in oil prices, with the West Texas Intermediate topping $100 a barrel due to concerns about the potential disruption of 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, which is expected to maintain current interest rates. Market participants will be looking to the accompanying policy statement and the post-meeting press conference for clues about the future direction. After the US market closes, several major tech firms, including Alphabet, Amazon, Meta, and Microsoft, will report their earnings, with traders eyeing their artificial intelligence-related spending as a gauge for the AI trade and infrastructure buildout.