What Happened?
Shares of financial services company Robinhood (NASDAQ: HOOD) fell 4.8% in the afternoon session after a broad sell-off in the cryptocurrency market, driven by a sharp drop in the price of Bitcoin, weighed on crypto-related stocks.
The downturn reflected a wider “risk-off” mood among investors, who moved to shed riskier assets amid macroeconomic uncertainty. Bitcoin, the largest cryptocurrency, fell more than 5%, dropping below $86,000 and triggering liquidations worth hundreds of millions of dollars across the market. Other major digital currencies like Ethereum also experienced significant declines. This negative sentiment was linked to uncertainty over future interest rate decisions by the Federal Reserve.
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What Is The Market Telling Us
Robinhood’s shares are not very volatile and have had no moves greater than 5% over the last year.
The previous big move we wrote about was 5 days ago when the stock gained 8.2% on the news that it announced a new joint venture with Susquehanna International Group to acquire a 90% stake in the regulated exchange MIAXdx, a move to significantly bolster its prediction markets business. The deal positioned Robinhood to launch its own futures and derivatives exchange and clearinghouse by 2026. This allowed the company to manage execution and clearing internally, making prediction markets a core part of its long-term plan. The move built on the early success of the product, which had become the company's fastest-growing line by revenue, with customers having traded roughly 9 billion contracts since its launch. Following the announcement, Piper Sandler reiterated an Overweight rating on the stock, calling the deal "quite positive" and estimating it could boost Robinhood's prediction market economics by about 45%.
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