Key Takeaways
Why are COIN and HOOD dropping sharply?
COIN and HOOD are feeling the high-beta impact of a broader risk-off, with selling across exchanges and miners amplifying pressure.
Is the market signaling a deeper downturn?
BTC’s fragile $100k support, skewed order books, and $144 billion in OI suggest liquidation risk, reflecting fragility rather than confirmed bottoms.
The broader risk-off is bleeding into crypto-linked stocks.
While pressure is coming from across the market, including miner stocks like Marathon Digital Holdings (NASDAQ: MARA), which fell 7% to a two-month low, at press time, a deeper sell-off is hitting exchange-based crypto stocks.
Robinhood (NASDAQ: HOOD) has dropped 11% intraday to $127, a sharper decline than its mid-October crash, which was triggered by crypto volatility and platform slowdowns.
Source: TradingView (HOOD/USD)
Coinbase (NASDAQ: COIN) mirrored the trend, plunging 15% after the crash to a monthly low of $310.
Overall, the sell-off in crypto-related stocks signals a broader market shakeout, with pressure spreading across major trading platforms.
In this context, what do COIN’s 7.57% intraday dip, HOOD’s 11% drop, and weakness in other crypto equities indicate? Is the market bracing for another October-style cascade, or is this just a temporary technical blip?
COIN, HOOD order books reveal flow imbalance
The market’s at a crossroads, with key support levels hanging by a thread.
That said, exchange orderbooks are giving clues. On Coinbase, Bitcoin’s [BTC] bid-depth (+2%) sat at $9 million, while the ask-depth (-2%) towered at $26 million, at press time, signaling that sellers are dominating near-term flows.
Against this backdrop, BTC’s $100k level looks extremely vulnerable. As a result, another liquidation cascade can’t be ruled out, with $144 billion in “market-side” Open Interest (OI) at risk of getting squeezed.
Source: Coinglass
In short, COIN and HOOD’s intraday dips are echoing this high-beta setup.
As selling accelerates across Coinbase, Robinhood, and other exchanges, these stocks are taking heavy short-term hits. On top of that, miners are under similar pressure, signaling a broad liquidity squeeze across sectors.
Thus, with COIN and HOOD losing support, the market hasn’t confirmed a bottom yet. In other words, the bleed in crypto-linked stocks is spilling over into broader markets, rather than the market driving these declines.
