The cryptocurrency market is experiencing a significant downturn, with crypto-related stocks declining sharply on Wednesday. This comes after Robinhood reported a 47% drop in crypto-related revenue, leading to a 14% decline in its stock price.
The news has had a ripple effect, with other crypto exchanges such as Coinbase and Bullish also experiencing significant losses. The weakness in the crypto market is attributed to lackluster trading demand and escalating tensions between the US and Iran. Bitcoin miners such as Riot Platforms and MARA have also slid 6-7%, while the largest corporate bitcoin owner, Strategy, has fallen 4%.
The decline in crypto stocks has been more pronounced than the decline in crypto prices, with bitcoin edging below $76,000. The rejection of Iran's proposal by President Trump has led to a surge in oil prices, with the West Texas Intermediate topping $100 a barrel.
The Federal Reserve meeting results are expected to provide further catalysts for the market, with investors looking to the policy statement and press conference for clues about future direction. The earnings reports of big tech firms such as Alphabet, Amazon, Meta, and Microsoft will also be closely watched, particularly their artificial intelligence-related spending.