Robinhood Stock Surges As Bitcoin Rebounds Above $68,000

Robinhood Markets Inc (NASDAQ:HOOD) shares are surging Friday morning, driven by volatility in the broader crypto market. The surge follows a dip near the $60,000-level for Bitcoin (CRYPTO: BTC) late Thursday, before rebounding to the $68,000-level Friday.

Here’s what investors need to know.

• Robinhood Markets stock is showing exceptional strength. Why is HOOD stock up today?

Crypto Market Influence

Robinhood’s stock movement is closely tied to the cryptocurrency market, which has seen significant fluctuations. Earlier this week, Bitcoin’s pullback impacted several crypto-related stocks, including Robinhood.

The company had experienced a sharp decline this week as Bitcoin’s value dipped, reflecting the interconnectedness of Robinhood’s trading platform with cryptocurrency performance.

How Robinhood Makes Money On Crypto

Robinhood's app is designed to encourage frequent trading. The company offers zero-commission stock and options trades, but generates revenue behind the scenes through payment for order flow and interest earned on customer cash balances.

On the crypto side, Robinhood Crypto routes customer orders to third-party trading venues and typically earns revenue via spreads or rebates tied to each transaction rather than charging an upfront commission. Crypto has also become a meaningful contributor to Robinhood's overall transaction-based revenue.

Put simply, the more users buy and sell Bitcoin and other digital assets, the more opportunities Robinhood has to collect trade-related revenue.

HOOD Technical Analysis

Currently, Robinhood is trading 21.1% below its 20-day simple moving average (SMA) and 34.7% below its 100-day SMA, indicating a bearish short-term trend.

Over the past 12 months, shares have increased by 51.48%, positioning them closer to their 52-week highs than lows, which suggests a potential recovery phase.

The RSI is at 15.26, indicating that the stock is in oversold territory, while the MACD is below its signal line, reflecting bearish pressure.

The combination of the oversold RSI and bearish MACD suggests mixed momentum, indicating that while the stock is oversold, the bearish trend remains intact.

• Key Resistance: $103.50
• Key Support: $81.00

HOOD Shares Surge Friday Morning

HOOD Price Action: Robinhood Markets shares were up 12.70% at $81.91 at the time of publication on Friday, according to Benzinga Pro data.

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