Robinhood Stock Is Falling Today Despite Retail Calling It ‘Oversold’ – What’s Driving Such A Selloff?

• Cathie Wood’s Ark added more than 360,000 shares of Robinhood across its funds on Tuesday.
• At the time of writing, Robinhood stock was among the trending stocks on Stocktwits’ platform. 
• According to data from sosovalue, Bitcoin ETFs have seen billions in outflows in the past two weeks. 

Robinhood (HOOD) shares got retail traders’ attention on Wednesday as weakness in Bitcoin dragged the shares down more than 10%.

Crypto-linked equities have been struggling this week amid weakness in both the crypto and stock markets amid the government shutdown and concerns about limited liquidity in the market.

At the time of writing, Robinhood stock was among the most trending stocks on Stocktwits’ platform. 

Cathie Wood Buying Hood 

Cathie Wood’s Ark Invest has continued buying the dip in crypto-linked stocks, adding shares of Robinhood (HOOD), Coinbase (COIN), Bitmine Immersion Technologies (BMNR) and other digital asset plays, while Bitcoin (BTC) price plunged below $94,000.

The latest purchases followed a heavier bout of buying on Monday, with Ark adding more than 360,000 shares of Robinhood across its funds. 

Weakness In Bitcoin

On Tuesday, Bitcoin fell to its lowest levels since US President Donald Trump took office for the second term. The previous lowest was $74,425 recorded on April 7; Bitcoin is still under that level. 

At the time of writing, Bitcoin’s price fell 3.2% to $73,801 levels, after recovering earlier in the day, as investors steer clear of riskier assets. The rout has worsened since Trump announced Kevin Warsh as the nominee to become next federal Reserve chair.

According to data from sosovalue, Bitcoin ETF recorded almost $1.5 billion in outflows last week, its second week in a row when there were outflows in the Total Bitcoin Spot ETF. Before that, the Bitcoin Spot ETF recorded $1.33 billion in weekly outflows. 

How Did Stocktwits Users React?

Retail sentiment around HOOD changed from ‘bearish’ to ‘extremely bullish’ territory amid ‘extremely high’ message volume on Stocktwits.

One user said they will still be cautious here with looming earnings and the strong downtrend.

One user attributed the fall in HOOD stock to Cathie Wood buying HOOD’s stock. “Cathy Woods kiss of death never fails to deliver,” they wrote.

However, one bullish user said that stock is more than oversold.

Shares in the company have jumped 50% over the past 12 months. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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