Crypto-related stocks tumble across the board on Wednesday, with exchanges taking the biggest hit after Robinhood’s earnings miss and escalating tensions between Iran and the US
Robinhood ( HOOD ), a crypto-friendly digital brokerage, fell nearly 14% after it reported a nearly 47% drop in crypto-related revenue in the first quarter late Tuesday.
The weakness spilled over into the sector as investors took it as a signal of weak demand for crypto trading. US crypto exchange Coinbase ( COIN ) and institutional-focused exchange Bullish ( BLSH ), CoinDesk’s parent company, both fell 8%. Gemini ( GEMI ), the struggling exchange business of billionaire investors Cameron and Tyler Winklevoss, fell 6%.
Bitcoin miners Riot Platforms ( RIOT ) and MARA ( MARA ) also fell 6%-7%. Strategy ( MSTR ), the largest corporate bitcoin holder, fell 4%.
The declines were more pronounced than for crypto prices themselves, like bitcoin fell below $76,000, down 0.5% over the past 24 hours.
Adding to the pressure, President Donald Trump reportedly rejected an Iranian proposal to end the naval blockade and open the Strait of Hormuz, a critical global oil shipping route.
The Iranian regime’s proposal involved reopening the strait while nuclear talks were delayed, but Trump chose to maintain his naval blockade until a broader nuclear deal is reached, Axios reported.
The news sent oil prices up 6%, with West Texas Intermediate topping $100 a barrel on concerns that energy supply chains in the Middle East could remain under pressure.
Meanwhile, US shares show only modest losses, with the Nasdaq down 0.35 per cent.
The afternoon session promises several catalysts, the first being the results of the Federal Reserve meeting. No change in rates is what will be Jerome Powell’s last meeting as chairman. However, market participants will look to the accompanying policy statement and Powell’s post-meeting news conference for clues about future direction.
After the U.S. market closes, a number of major tech companies — including Alphabet ( GOOG ), Amazon ( AMZN ), Meta ( META ) and Microsoft ( MSFT ) — will report earnings. Traders will see corporate AI-related spending as a benchmark for AI trading and infrastructure build-out.
