Crypto Winter: Why Investors Are Leaving This Popular Stock Out In the Cold
Robinhood Markets (NASDAQ: HOOD) is perhaps the ultimate poster child for the financial market frenzy of 2021. Retail investors rushed into stocks, options contracts, and cryptocurrencies in a stampede, armed with a slice of U.S. government stimulus payments and a thirst to find the next life-changing investment. Robinhood was largely their trading platform of choice.
But that story flipped in 2022. Society has mostly returned to normal with the lifting of most pandemic restrictions, and consumers are faced with soaring cost-of-living pressures in the form of high inflation and rising interest rates.
The cryptocurrency market, which thrives on speculation, has become collateral damage as the retail crowd pulls back on risky investing activity. That has dealt a serious blow to Robinhood's revenue, as the company rushed into the crypto brokerage business in 2020 to satisfy its customers' appetite for the asset class.
Source Fool.com
