Robinhood, Coinbase Lead Crypto Stocks Fall as Investors Worry About Macroeconomic Concerns

Cryptocurrency stocks fell amid a broad market slowdown, as investors again fretted over macroeconomic uncertainties, including the latest U.S. jobs data, escalating trade tensions and the government shutdown, now in its record 37th day.

Shares of Robinhood Market fell more than 7% to trade at $131, but were down more than 9% at one point, falling to their lowest level in more than two weeks, according to data from Yahoo Financial. The drop comes just a day after the company beat analysts’ estimates for revenue and earnings per share for its third quarter ending September 30. Crypto exchange giant Coinbase fell more than 6%, while Galaxy Digital fell 4%.

“The whole crypto market is just buffered by macroeconomic events and changes in sentiment,” said Mark Palmer, an equity analyst at investment bank Benchmark. Decrypt. “When it comes to interest rate expectations, tariffs (and) everything else that goes into the macroeconomic outlook.”

“Even though they don’t directly impact many crypto stocks, they increase the risk premium in the market as a whole, and in the absence of positive catalysts, this causes crypto stocks to fall along with everything else.”

The carnage occurred amid growing unrest over the shutdown that has already begun to impact the U.S. economy and falling economic indicators. Thursday, outplacement firm Challenger, Gray & Christmas reported that U.S.-based employers shed 153,074 jobs in October, nearly triple the total for the same period last year and the highest total for the month since 2003.

Trade wars between the United States and China and other major trading partners have also shown signs of undermining the economy.

Major miners fell, with MARA Holdings down 3.6% and CleanSpark and Riot Blockchain down more than 5%. Bitcoin treasury strategy declined 6.5%, while Ethereum treasuries BitMine Immersion and SharpLink Gaming fell 7% and 6%, respectively.

Palmer noted that government gridlock had prevented the passage of much-anticipated crypto legislation, the Clarity Act, and a separate Market Structure Bill (RFIA), which could potentially support markets.

“Given that the government remains paralyzed, so the timing of enacting this legislation is uncertain, there really is no underlying catalyst that would drive prices higher,” Palmer said.

The indexes were in negative territory, with the tech-heavy Nasdaq down almost 2%, the tech-heavy S&P 500 and the Dow Jones Industrial Average both down more than 1%.

Bitcoin was recently trading at around $101,500, down 2% in the past 24 hours, even after recovering some of the lost ground, according to crypto market data provider CoinGecko. The largest cryptocurrency by market value has fallen about 18% since hitting its all-time high above $126,000 a month ago. Ethereum, the second largest digital asset, fell 3.6%.

Investor optimism has declined in recent weeks amid a market slowdown, although in a Myriad prediction market, 57% of respondents believe BTC’s next move will be to $115,000. Myriad is a unit of Dastan, the parent company of an independent publisher Decrypt.