Robinhood stock overtakes Bitcoin in intraday crash, down more than 10% in pre-market – Cointelegraph

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The cost of buying a Robinhood (HOOD) share fell drastically during the pre-market session on Thursday, even beating so-called volatile cryptocurrencies like Bitcoin in terms of intraday losses.

In detail, HOOD was down 10.2% to $ 63.25 at 8:00 a.m. EDT from its high of $ 85 in the previous session. On the other hand, Bitcoin (BTC) has fallen almost 6% in the past 24 hours, trading around $ 37,600.

The stock plunged in part because of its excessive valuations which prompted traders to lock in their interim profits. In addition, its sale accelerated after Robinhood Markets announced that it would sell up to 97,876,033 of its Class A shares over time.

Nevertheless, the company clarified that it would not receive any part of the capital of the procedure. Instead, the selling shareholders – including subsidiaries of Andreessen and New Enterprise Associates – would receive the benefits.

HOOD’s decline came a day after it climbed more than 50% in a rally meme, which earned Robinhood’s no-fee trading platform a market cap of $ 58.9 billion. dollars. Supersonic volatility caused multiple trading stops on the Nasdaq exchange.

Robinhood HOOD stock has jumped four days in a row in a rally supported by retail traders. Source: TradingView

Solidarity retail traders, led by Cathie Wood’s flagship exchange-traded fund Ark Innovation, started buying HOOD after its disappointing IPO on July 29.

Related: Echoing The GameStop Saga, Retail Traders Fuel Robinhood Share Price Rise

This marked yet another example of how an army of small traders exerted influence on Wall Street, a trend that Robinhood herself helped spur during the infamous GameStop and AMC stock pump in January 2021.

The frenzy ultimately led to the closure of Square Capital, a hedge fund that had placed a short bet on GameStop. Additionally, Melvin Capital, which was also bearish on GameStop, suffered a 53% loss.

Retail-led bullish booms have also spilled over into the cryptocurrency market, with cumulative annual crypto Dogecoin (DOGE) meme returns reaching 8,000% as a result of congregations of traders on Reddit and other platforms. of social media who wanted to push Dogecoin prices to $ 1. To date, the price of DOGE has managed to reach nearly $ 0.70.

Dogecoin prices have not reached $ 1. Source: TradingView

But so-called memes stocks fell sharply after their super-volatile bull runs. For example, GameStop fell 70% on Wednesday from its all-time high of $ 483. Likewise, Dogecoin fell 75% and AMC Entertainment – 64.23%.

London-based hedge fund Odey Asset Management, which manages around $ 4.1 billion, recently took a short bet on AMC stock.