Robinhood and eToro Stocks Plunge as Bitcoin Crashes to 2024 Lows

Robinhood and eToro got hammered Thursday. Bitcoin’s brutal drop to $63,500 dragged both trading platforms down hard, with Robinhood closing at $75.67 after losing nearly 10% in a single session.

That’s eight straight days of losses for Robinhood, wiping the stock back to June 2025 levels and erasing most gains from the late-2025 crypto boom. The pain spread across crypto-linked stocks as Bitcoin suffered its worst single-day beating in over a year, plunging more than 13% and hitting lows not seen since October 2024. eToro didn’t fare much better, dropping roughly 7% to close below $26.54. The trading platform went public on Nasdaq in May 2025 at $69 but has now lost over 60% of its value since that debut.

Bitcoin’s crash was pretty brutal.

The entire crypto market cap fell 6.4% in 24 hours to $2.49 trillion, with most of the top 100 digital assets bleeding red. Bitcoin’s now down 44% from its October peak, erasing over $800 billion in market value. Coinbase, the biggest U.S. crypto exchange, got crushed too, falling over 13% to around $152.44 for its eighth straight losing session.

The problem for these platforms is simple – they’re basically crypto plays in disguise. eToro’s revenue came 91% from digital assets in Q2 2025, making it extremely vulnerable to market swings. In 2024, crypto made up nearly 40% of eToro’s $931 million commission revenue, but that number bounces around wildly with Bitcoin’s price.

Arkadiusz Jóźwiak, a crypto analyst, put it bluntly: “Investors see shares of companies like eToro and Robinhood as indirect exposure to cryptocurrencies.”

He’s right. Their financial results are tied directly to crypto market performance, creating massive volatility in their stock prices. Robinhood’s more diversified than eToro but still faces serious crypto exposure. In Q3 2025, crypto revenue hit $268 million, about 20% of total revenue and a 339% year-over-year jump. But retail buying activity has slowed since late October’s surge, raising questions about whether trading volumes can stay high.

Both companies rode the 2024 digital asset wave hard. eToro’s commission revenue jumped 48% year-over-year, with Q4 2024 contributing big gains as Bitcoin surged. Net profit soared to $192 million from $15.3 million in 2023, driven almost entirely by crypto trading activity. More on this topic: Bitcoin ETF Inflows Reverse with 6.

Robinhood’s Q4 2024 cryptocurrency revenue of $358 million was up 700% year-over-year.

That number actually beat options trading revenue for the first time ever. The company reported total revenue of $2.95 billion for 2024, with crypto accounting for 21% of the total. Those gains look pretty shaky now with Bitcoin crashing and retail traders getting spooked by the volatility.

“When Bitcoin rises, everyone is happy and shares rise, but when it falls, sentiment changes,” Jóźwiak said. “If Bitcoin continues to fall, Robinhood and eToro may follow.” The analyst didn’t specify exact price targets, but the correlation seems pretty clear based on recent trading patterns.

The crypto crash hit other major players too. Binance reported trading volumes down over 10% compared to last month, reflecting broader caution among retail investors who are getting nervous about the wild price swings. Galaxy Digital saw its shares drop 15% to $9.87 on February 3, with CEO Mike Novogratz acknowledging the tough environment while maintaining long-term confidence in digital assets.

Grayscale’s Bitcoin Trust discount widened to 25% as of Thursday. This follows earlier reporting on FBI Joins Hunt for Nancy Guthrie.

That signals serious investor doubt, with the trust’s shares trading way below Bitcoin’s actual market price. MicroStrategy, which holds tons of Bitcoin, fell 12% to $210 on February 5 as its aggressive crypto strategy made the stock extremely sensitive to Bitcoin moves. Tesla dropped 5% to $198 the same day, partly due to its own Bitcoin holdings making the stock vulnerable to crypto volatility.

Square fell 8% to $125 despite CEO Jack Dorsey’s continued Bitcoin support and the company’s integration of crypto into Cash App. The SEC announced a review of recent market activity on February 4, including the sharp crypto price movements, though no immediate regulatory changes were indicated.

Kraken bucked the trend slightly, reporting higher trading volumes despite falling prices. CEO Jesse Powell noted that volatility actually drove more activity on their platform, though he didn’t provide specific numbers. Neither Robinhood nor eToro provided additional comments about their stock performance or crypto exposure strategies.

The regulatory environment adds another layer of uncertainty for crypto-focused trading platforms. The SEC’s ongoing scrutiny of digital asset operations has already forced several exchanges to modify their offerings, with Coinbase paying $100 million in fines last year for unregistered securities violations. European regulators under MiCA (Markets in Crypto-Assets) rules are implementing stricter compliance requirements that could impact eToro’s operations across EU markets, potentially increasing operational costs by an estimated 15-20% according to industry analysts.

Meanwhile, the broader fintech sector is watching these developments closely. Charles Schwab reported a 23% increase in crypto-related customer inquiries during January 2025, suggesting retail interest remains strong despite the volatility. Interactive Brokers expanded its crypto offerings in December 2024, adding support for 15 new digital assets and reporting $45 million in crypto-related revenue for Q4. Fidelity’s digital asset arm managed $8.2 billion in crypto investments as of January 2025, up from $6.1 billion six months earlier. These traditional brokers are positioning themselves to capture market share if platforms like Robinhood and eToro continue struggling with crypto dependency issues.