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Robinhood may have taken this decision to halt trading to avoid an anxiety surge amongst traders and to mitigate the volume of losses that they incur.
Robinhood Markets Inc (NASDAQ: HOOD) is reportedly bearing the brunt of the stock and crypto market plunge. In the last 24 hours, stocks have lost a significant percentage of their recent price gain, and so have crypto assets. As a result of the massive losses and volatility, users are claiming a halt on trading on Robinhood.
Robinhood Reacts to Double Digit Losses in Tech Stocks
The trigger for the losses are still unknown but some of the stocks of top tech companies have seen double-digit plunges in this short period. Earlier, Alphabet Inc (NASDAQ: GOOGL) stock experienced a fall of 6.79% in the pre-market and is pegged at $161.37.
Similarly, Amazon.com Inc (NASDAQ: AMZN) is down by 2.82% to $163.16, Microsoft Corp (NASDAQ: MSFT) plunged by 3.5% in Pre-market trading to $394.13 after dropping by over 2% in the last trading session. Other tech giants like Nvidia Corp (NASDAQ: NVDA) slipped 6.56% to $100.23.
Apple Inc (NASDAQ: AAPL), Meta Platforms Inc (NASDAQ: META), and Tesla Inc (NASDAQ: TSLA) also separately recorded losses of 10% in days. Presently, AAPL has seen a revival and is 0.69% up from the level it fell to. While META and TSLA are only down by 1.93% and 4.24% respectively.
Robinhood may have taken this decision to halt trading to avoid an anxiety surge amongst traders and to mitigate the volume of losses that they incur. It is still early to speculate but oftentimes, a small amount of volatility could mean greater good for the market. The stock market is likely facing the phase that comes before a massive valuation boost for the market.
Just like the stock market is suffering intense losses, so also is the crypto market. Bitcoin (BTC) is currently down by 12.30% and trading at $52,874.82. Ethereum (ETH) has also tanked and is trading at $2,351.35, corresponding with a dip of 18.56%.
On the flip side, Bitcoin’s trading volume is up by 169.34% within the last 24 hours. It is still the second most traded asset in the crypto ecosystem while maintaining its largest market cap rank.
Japanese Stock Market Sees Downturn
Meanwhile, this volatile trend comes only a few days after the Japanese Stock market faced similar negative sentiment. On the second trading day of this month, the Japanese market faced big losses triggered by the rapid monetary adjustments bordering on the yen by the Bank of Japan (BoJ) and the sell-off in stocks in the United States.
The Japan Topix Index, a couple of the companies representing the broad swath of the Japanese economy, saw intense selloffs. This caused the metric to tumble by 6.1% on Friday, further extending the losses of the previous day. The report says it became the index’s worst two-day performance recorded since the 2011 earthquake and tsunami.
Another metric, the Nikkei 225 (INDEXNIKKEI: NI225) equally tanked by 5.8% to 35,909.70.
