Down 14% after disappointing earnings, Robinhood Markets (NASDAQ: $HOOD) stock leads a drop in cryptocurrency-related stocks on April 29.
Cryptocurrency stocks are falling after Robinhood earnings missed Wall Street forecasts and amid rising tensions between the United States and Iran.
Robinhood reported a 47% decline in cryptocurrency-related revenue during the first quarter of this year, which surprised many analysts and investors and led to the current drop.
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Other cryptocurrency stocks fell sharply on the day, with US exchanges Coinbase Global (NASDAQ: $COIN) and Bullish (NYSE: $BLSH) each falling 8%.
Gemini (NASDAQ: $GEMI), the crypto exchange run by billionaire twin brothers Cameron and Tyler Winklevoss, is down 6%.
At the same time, Bitcoin miners (CRYPTO: $BTC), Riot Platforms (NASDAQ: $RIOT), and MARA Holdings (NASDAQ: $MARA) are down 7%.
Strategy (NASDAQ: $MSTR), the largest corporate holder of BTC, is down 4% on the day.
The declines also come as the price of Bitcoin falls lower, falling to US$75,500 in afternoon trading after hovering around US$77,000 earlier in the day.
Adding to the pressure on risk assets was US President Donald Trump’s rejection of an Iranian proposal to end the naval blockade and open the Strait of Hormuz, a critical route for oil transportation.
That news sent oil prices up 6% on concerns that energy supply chains in the Middle East will remain under pressure for some time.
Cryptocurrency stocks could be further affected by upcoming financial results from mega-cap tech names like Alphabet (NASDAQ: $GOOGL), Amazon (NASDAQ: $AMZN), Meta (NASDAQ: $META), and Microsoft (NASDAQ: $MSFT), all of which are due to report earnings after the bell.