TLDR
- Robinhood stock dropped by more than 10%, reaching its lowest point in seven months due to a broad crypto market sell-off.
- Bitcoin’s sharp decline over the weekend triggered a wave of losses across crypto-linked platforms, including Robinhood.
- Robinhood’s reliance on crypto transaction revenue has made it vulnerable to market fluctuations, particularly when crypto volumes drop.
- Trading volumes in Robinhood’s equities, options, and crypto markets showed a significant decline in November, signaling a slowdown in activity.
- The end of the NFL season is expected to reduce revenue from Robinhood’s prediction markets, which rely heavily on sports contracts.
Robinhood stock (NASDAQ: HOOD) fell more than 10% on Monday, reaching its lowest point in seven months. The decline came amid a broader sell-off in the crypto market and a slowdown in trading activity. This sharp drop follows a series of underwhelming performance metrics and growing concerns about the company’s exposure to volatile digital assets.
Crypto Correction Hits Robinhood Stock
Bitcoin’s sharp decline over the weekend led to a widespread slump in crypto-linked stocks. Bitcoin fell from $83,800 to a low of $74,570, causing a ripple effect across the market. This plunge erased over $200 billion in crypto market value and triggered $2 billion in liquidations of leveraged positions.
As a result, Robinhood, heavily reliant on crypto-related revenues, saw a significant drop in its stock price. In 2025, cryptocurrency transaction revenue surged by 200%, becoming Robinhood’s fastest-growing revenue segment. However, with the crypto market cooling off, analysts worry about the platform’s ability to maintain its growth momentum.
Piper Sandler analysts, who have an Overweight rating on Robinhood stock, highlighted three near-term headwinds. These include a decline in crypto trading volumes, the end of the NFL season, and a potential lack of immediate catalysts for the company’s growth. As a result, Robinhood’s stock remains under pressure, and investors are questioning the firm’s ability to weather these challenges.
Robinhood Reports Q4 Earnings Amid Trading Slowdown
Trading volumes in Robinhood’s core equities and options markets have also shown signs of slowing down. In November, trading volumes dropped by 37% in equities, 28% in options, and 12% in crypto. This slowdown is impacting Robinhood’s ability to generate strong transaction revenue, which has historically been a key driver of the company’s financial performance.
The company’s prediction markets, launched with much fanfare in 2025, have also begun to lose their appeal. While the launch of football contract trading in August 2025 helped boost engagement, the end of the NFL season in February is expected to cause a sharp drop in activity. Robinhood is hoping to fill this void with NBA and MLB contracts, but analysts remain skeptical about the sustainability of these seasonal markets.
Despite these challenges, Robinhood is scheduled to report its fourth-quarter and full-year 2025 earnings on February 10. The company expects revenue of $1.34 billion, a 32% year-over-year increase, but a 38% drop in earnings per share due to rising operating expenses.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
