Robinhood Stock Dips as Bitcoin Falls, Risk Appetite Cools

Robinhood Markets Inc (NASDAQ:HOOD) shares are sliding Wednesday as crypto-linked stocks follow Bitcoin lower and investors pull back from risk.

Robinhood Falls With Bitcoin

Crypto-linked stocks, including Robinhood, are falling as Bitcoin drops. Rising yields, the Middle East conflict and a stronger dollar, which surged to an 18-month high Tuesday, are cooling risk appetite. Robinhood also bought $25 million of Bitcoin (CRYPTO:BTC) for its corporate balance sheet, joining a growing group of public companies that hold the token in their treasuries.

The 10-year Treasury yield is hovering between 5.30% and 5.34%, while the 10-year real yield has reached 2.91%. Higher risk-free rates squeeze consumers, governments and lower-quality companies. They also make bonds more competitive with stocks, which tends to weigh on richly valued names.

President Donald Trump’s remarks about the danger Iran poses to U.S. cities drew bipartisan backlash. Separately, Reuters reported that Trump told a Monday rally in Grand Island, Nebraska, that higher fuel, fertilizer and other costs tied to the Iran conflict are a “small price to pay.” The White House defended Trump’s comments Tuesday, with Communications Director Steven Cheung saying Iran now lacks nuclear capability, a navy, an air force and financial resources.