Robinhood Markets Inc.
Robinhood Stock Falls as Crypto Stocks Slide
Crypto-linked stocks, Robinhood among them, are sliding Thursday as Bitcoin (CRYPTO: BTC) edges lower and investors size up the political shift from the midterms. Democrats gained ground in Congress, and Sherrod Brown, a longtime crypto doubter, won back a Senate seat despite more than $60 million spent against him by crypto-backed PACs.
The industry-backed Clarity Act, a proposal to set market rules, now looks harder to pass. TD Cowen's Washington analyst Jaret Seiberg, quoted by CNBC, said Democrats will probe Trump's crypto business ties, including World Liberty Financial. That climate, Seiberg said, could rule out any form of the legislation that crypto companies would back.
VanEck Stays Bullish On Bitcoin Long Term
VanEck's Matthew Sigel told CNBC that elections squeeze months of expectations into a single day of trading. That can create swings, Sigel said, that do not match the long-run picture. Sigel stays optimistic on Bitcoin because it has held up better than the Nasdaq, moves less in step with tech stocks and faces lighter regulation than other tokens.
Sigel also sees a possible tailwind: a Democratic Congress and a Republican White House may compromise on bigger budgets and more federal borrowing, which could make Bitcoin more attractive as a substitute for traditional money.
Sigel warned, though, that tokenization, stablecoins and altcoins stay exposed if future administrations undo policies at the SEC or CFTC.
HOOD Shares Are Tumbling
HOOD Price Action: Robinhood shares were down 12.00% at $76.92 at the time of publication on Thursday, according to Benzinga Pro.
