The cryptocurrency market is experiencing a downturn, with major exchanges such as Robinhood and Coinbase seeing substantial losses due to escalating US-Iran tensions and disappointing earnings reports. Robinhood's stock plummeted nearly 14% after the company reported a 47% decline in crypto-related revenue.
This decline has had a ripple effect on the sector, with investors interpreting it as a sign of weak crypto trading demand. As a result, other crypto exchanges, including Coinbase and Bullish, have seen their stock prices drop by 8%, while Gemini's stock has fallen by 6%. Bitcoin miners Riot Platforms and MARA have also experienced losses of 6-7%. The largest corporate bitcoin owner, Strategy, saw its stock drop by 4%.
The decline in crypto stocks has been more pronounced than the decline in crypto prices themselves, with bitcoin edging below $76,000. The pressure on the market has been further exacerbated by President Trump's reported rejection of an Iranian proposal to end the naval blockade and open the Strait of Hormuz.
This move has led to a 6% surge in oil prices, with the West Texas Intermediate topping $100 a barrel. The US stock market has seen 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 release of earnings reports from major tech firms such as Alphabet, Amazon, Meta, and Microsoft.