Cryptocurrency stocks were down across the board on Wednesday, with exchanges taking the biggest hit following Robinhood’s disappointing financial results and escalating tensions between Iran and the United States.
Robinhood (HOOD), the crypto-friendly digital broker, plunged nearly 14% after reporting late Tuesday that first-quarter crypto-related revenue fell by about 47%.
This weakness rippled through the sector as investors took this as a sign of weak crypto trading demand. U.S. cryptocurrency exchange Coinbase (COIN) and CoinDesk parent company Blish Institutional Exchange (BLSH) both fell 8%. Gemini (GEMI), the troubled currency business run by billionaire investors Cameron and Tyler Winklevoss, fell 6%.
Bitcoin miners Riot Platforms (RIOT) and Mara (MARA) also fell by 6-7%. Strategy (MSTR), the largest corporate holder of Bitcoin, fell 4%.
The decline was more pronounced than the cryptocurrency price itself, as Bitcoin fell 0.5% in the past 24 hours to just below $76,000.
Adding to the pressure was President Donald Trump’s reported rejection of Iran’s offer to lift the naval blockade and open the Strait of Hormuz, a globally important oil shipping route.
The Iranian regime’s proposal included reopening the strait while delaying nuclear negotiations, but President Trump has opted to maintain a naval blockade until a broader nuclear deal is reached, Axios reported.
Oil prices soared 6% on the news, with West Texas Intermediate above $100 a barrel on concerns that Middle East energy supply chains could continue to be under pressure.
Meanwhile, US stocks posted modest losses, with the Nasdaq down 0.35%.
The afternoon session promises more triggers, the first of which is the Federal Reserve’s results. No interest rate changes will mark Jerome Powell’s last meeting as chairman. However, market participants will be watching the accompanying policy statement and Powell’s post-meeting press conference for clues about the way forward.
After the U.S. market closes, a number of large tech companies are scheduled to report earnings, including Alphabet (GOOG), Amazon (AMZN), Meta (META), and Microsoft (MSFT). Traders will be watching corporate spending on artificial intelligence as an indicator of AI trade and infrastructure development.
