Why Is Hood Stock Price Crashing Today?

The Hood stock price dropped sharply today, as broad market selling hit equities, crypto assets, and precious metals. Robinhood shares fell as risk aversion intensified across asset classes. The decline followed weaker crypto prices, reduced trading activity, and valuation concerns, pushing HOOD to its lowest level since July 2025.

Hood Stock Price Slides as Losses Deepen

At the time of writing, Hood stock was trading at $91.04, down 8.49% over 24 hours, according to Yahoo Finance. The stock extended losses into a fifth straight session. As per Bloomberg’s Walters, Robinhood shares fell to a seven-month low.

Source: Yahoo Finance

However, the drop followed a strong prior run. Hood remains down roughly 19% year-to-date, despite a 200% rally during 2025. This sharp reversal indicated a changing sentiment as broader markets declined.

Meanwhile, selling pressure spread across equities, digital assets, and even gold and silver. Risk-off positioning weighed on trading-focused companies. As a result, stocks tied to retail activity faced added strain during the session.

Why the Stock is Falling

Several near-term risks weighed on the Hood stock. First, crypto trading volumes declined alongside falling token prices. Bitcoin’s weekend drop below $75,900 added direct pressure on the stock. Robinhood generates a significant portion of revenue from crypto trading. As Bitcoin prices fell, crypto trading volumes weakened across platforms.

In addition, technical indicators showed bearish momentum. The stock traded below major moving averages and opened with a gap down. This action is seen as relentless selling, indicating limited buying interest.

Valuation concerns also pressured sentiment. Analysts at The Motley Fool said HOOD shares could fall sharply in 2026 due to elevated valuation metrics. They cited a high forward price-to-earnings ratio and a price-to-sales multiple above five-year averages.

Moreover, profit-taking followed last year’s gains. Investors locked in profits after an extended rally. The lack of fresh positive catalysts further left the stock exposed to selling pressure.

Crypto Stocks and Robinhood Developments

Other crypto-linked stocks also declined. Strategy shares fell 1.83% to $146.97, despite Strategy acquiring 855 Bitcoin today. Circle stock dropped 4.12% to $61.32, while BitMine fell 5.82% to $23.64, despite continued Ethereum purchases.

According to Bloomberg, exchange-related stocks dropped between 40% and 55% over three months. The report cited investor concerns about sustainability in a low-volume environment.

Meanwhile, the U.S. federal government is considering Robinhood for a role overseeing proposed “Trump accounts” for millions of children. Also, CEO Vlad Tenev recently addressed the platform’s 2021 trading halts, referencing tokenization initiatives and proposed legislation, including the Digital Asset Market Clarity Act of 2025, which would expand CFTC oversight of digital commodities and intermediaries.