Robinhood Plunges Over 9% as Crypto Weakness Dims Retail Trading Outlook

Robinhood Markets (HOOD-US) shares tumbled 9.6% on February 2, 2026, amid growing investor concerns over weakening cryptocurrency markets and cooling retail trading activity. The drop outpaced rival Coinbase (COIN-US), despite Coinbase’s higher crypto exposure, suggesting broader worries about declining retail investor sentiment across speculative assets like meme stocks, gold, and silver. Crypto prices fell roughly 7% over the weekend, adding pressure on Robinhood, which derived 21% of its revenue from crypto in Q3 and held crypto assets representing 15% of its total custodied assets. Mizuho analyst Daniel J. O’Regan noted the stock broke below its 200-day moving average last week, accelerating losses to a seven-month low—down about 44% from its October 2025 peak. While Mizuho’s Dan Dolev highlighted Robinhood’s recent UK launch of zero-fee stock and ISA accounts with 2% cashback through April 2026 as a potential catalyst, near-term headwinds from retail risk aversion remain acute.