Robinhood, Coinbase lead crypto stock rout as Trump rejects Iran plan

Crypto-related stocks are tumbling across the board on Wednesday with exchanges taking the biggest hit after Robinhood's earnings miss and escalating tensions between Iran and the U.S.

Robinhood (HOOD), a crypto-friendly digital broker, plunged nearly 14% after it reported late Tuesday an almost 47% decline in crypto-related revenue in the first quarter.

The weakness spilled across the sector as investors took it as a signal for lackluster crypto trading demand. U.S. crypto exchange Coinbase (COIN) and institutional-focused exchange Bullish (BLSH), CoinDesk's parent company, both fell 8%. Gemini (GEMI), the embattled exchange business of billionaire investors Cameron and Tyler Winklevoss, dropped 6%.

Bitcoin miners Riot Platforms (RIOT) and MARA (MARA) also slid 6%-7%. Strategy (MSTR), the largest corporate bitcoin owner, was down 4%.

The declines were more pronounced than for crypto prices themselves, as bitcoin edged below $76,000, down 0.5% over the past 24 hours.

Adding to the pressure was President Donald Trump reportedly rejecting an Iranian proposal to end the naval blockade and open the Strait of Hormuz, a critical global oil shipping route.

The Iranian regime's proposal involved reopening the strait while delaying nuclear negotiations, but the Trump opted to maintain its naval blockade until a broader nuclear deal is reached, Axios reported.

The news sent oil prices surging 6%, with the West Texas Intermediate topping $100 a barrel on concerns that energy supply chains in the Middle East could remain under pressure.

U.S. stocks, meanwhile, are posting just modest losses, with the Nasdaq down 0.35%.

The afternoon session promises more catalysts, the first being the Federal Reserve meeting results. No change in rates is what will be Jerome Powell's final meeting as chairman. Market participants, however, will be looking to the accompanying policy statement and Powell's post-meeting press conference for clues about the future direction.

After the U.S. market closes, a slew of big tech firms — including Alphabet (GOOG), Amazon (AMZN), Meta (META) and Microsoft (MSFT)— will report earnings. Traders will eye the firms' artificial intelligence-related spending as a gauge for the AI trade and infrastructure buildout.