The cryptocurrency sector is experiencing a significant downturn, with major exchanges feeling the impact of Robinhood's disappointing earnings and escalating US-Iran tensions. Robinhood, a prominent digital brokerage firm, saw its stock plummet by nearly 14% after reporting a 47% decline in cryptocurrency-related revenue in the first quarter. This weakness has spread throughout the sector, with investors interpreting it as a sign of sluggish demand for cryptocurrency trading. As a result, US cryptocurrency exchange Coinbase and institutional-focused exchange Bullish have both fallen by 8%, while Gemini has dropped 6%.
Bitcoin miners Riot Platforms and MARA have also slid by 6-7%, and Strategy, the largest corporate owner of bitcoin, has declined by 4%. The decline in cryptocurrency stocks is more pronounced than the decline in cryptocurrency 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 energy supply chains in the Middle East. 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 the earnings reports of major tech firms such as Alphabet, Amazon, Meta, and Microsoft.