Robinhood Stock Dives 10% As Bitcoin Pullback Hits Crypto Players

Robinhood Markets Inc (NASDAQ:HOOD) shares are trading lower Wednesday afternoon as Bitcoin (CRYPTO: BTC) slid to around $72,500 at the time of publication, pressuring one of the market's most popular ways to bet on retail crypto demand.

Bitcoin's latest drop comes after fresh ETF outflows and extreme fear sentiment across digital assets. Here’s what investors need to know.

• Robinhood Markets stock is among today’s weakest performers. What’s pressuring HOOD stock?

Why Hood Trades Like A Crypto Stock

Even though Robinhood is best known as a stock-trading app, investors treat it as a proxy for crypto risk appetite. A slice of the company's transaction-based revenue still comes from customers trading Bitcoin, Ethereum and other popular altcoins.

When token prices fall, many small investors pull back, volumes cool and Wall Street marks down Robinhood's growth prospects. The recent selloff has already erased tens of billions in paper profits for large corporate Bitcoin holders, underscoring how violent the reversal has been.

How Crypto Trading Fuels Robinhood's Revenue

Robinhood's core business is commission-free trading, but it earns money behind the scenes. Market makers and trading venues pay the firm for routing customer orders, and it also captures a spread on many crypto trades instead of charging a visible fee. The more users trade, the more revenue Hood books from that activity.

When prices sink and headlines turn cautious, activity slows, squeezing the fees that support Robinhood's top line and giving investors a clear reason to sell the stock alongside the latest crypto downturn.

Is Robinhood’s Bearish Trend A Red Flag?

Currently, Robinhood is trading 27.8% below its 20-day simple moving average (SMA) and 37.3% below its 100-day SMA, indicating a bearish trend. Shares have increased 48.80% over the past 12 months, but they are positioned closer to their 52-week lows than highs, suggesting potential weakness in the current market environment.

The RSI is at 21.33, which is considered oversold territory, while the MACD is below its signal line, indicating bearish pressure on the stock. The combination of oversold RSI and bearish MACD suggests mixed momentum.

• Key Resistance: $100.00
• Key Support: $70.00

How Robinhood Is Redefining Financial Services

Robinhood Markets is creating a modern financial services platform. It designs its own products and services and delivers them through a single, app-based cloud platform supported by proprietary technology.

Its vertically integrated platform has enabled the introduction of new products and services such as cryptocurrency trading, dividend reinvestment, fraud detection, derivatives, fractional shares, recurring investments and others.

Earnings Next Week: What To Expect This Time?

Investors are looking ahead to the next earnings report on Feb. 10.

• EPS Estimate: 62 cents (Up from 54 cents YoY)
• Revenue Estimate: $1.33 billion (Up from $1.01 billion YoY)
• Valuation: P/E of 36.3x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $138.05. Recent analyst moves include:

• Needham: Buy (Maintains Target to $135.00) (Jan. 28)
• Argus Research: Initiated with Buy (Target $145.00) (Jan. 9)
• Barclays: Overweight (Lowers Target to $159.00) (Jan. 8)

Valuation Insight: While the stock trades at a premium P/E multiple, the strong consensus and rising estimates suggest analysts view the growth prospects as justification for the 75% upside to analyst targets.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Robinhood Markets, highlighting its strengths and weaknesses compared to the broader market:

• Value Rank: 13.03 — Stock is trading at a steep premium relative to peers.
• Growth Rank: 90.95 — Strong growth potential indicated.
• Momentum Rank: 76.34 — Stock is outperforming the broader market.

The Verdict: Robinhood Markets’ Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Growth (90.95) and Momentum (76.34) scores confirm strong potential, the low Value (13.03) score warns that the stock is priced for perfection—investors should proceed with caution.

HOOD Shares Slide Wednesday Afternoon

HOOD Price Action: Robinhood Markets shares were down 10.21% at $78.18 at the time of publication on Wednesday, according to Benzinga Pro data.

This chart shows the stock's price since February 2025, climbing from the mid-$30s to a peak around $152 before rolling over and plunging sharply at the end of the period.

Short- and medium-term moving averages (20-day and 50-day) initially trend above the long-term 200-day average during the uptrend, but all three flatten and turn down as the price breaks below them, signaling a decisive loss of bullish momentum.

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