Crypto slump hits Robinhood and Coinbase

A renewed decline in cryptocurrency prices is creating headwinds for trading platforms whose fortunes are closely tied to retail speculation, according to investor Steve Eisman. In his weekly market commentary, Eisman cited the latest slump in Bitcoin and other digital assets as a key factor hurting Robinhood and Coinbase, two of the most prominent U.S. operators in this space.

Bitcoin was recently quoted at $68,607.43, down 3.14% over 24 hours and 45.65% below its record high of $126,198.07 reached on Oct. 7, 2025. Eisman argued that as long as crypto prices keep moving lower, the share prices of crypto‑exposed platforms are likely to remain under pressure, reflecting weaker trading activity and sentiment.

Eisman highlighted Robinhood Markets as particularly vulnerable to the latest leg down in digital assets. He said a “not insignificant portion” of Robinhood’s customer base invests in cryptocurrencies, making the company’s financial performance sensitive to swings in that market.

Robinhood recently missed expectations on earnings, revenue and net new assets, which Eisman described as “critical metrics” for the business. Against that backdrop, he said he doubts Robinhood’s stock will recover until crypto markets stabilize, linking the platform’s near‑term outlook directly to digital‑asset conditions.

Eisman drew a parallel between Robinhood and Coinbase, noting that Coinbase’s revenue declined 22% and the company also missed earnings‑per‑share estimates. He argued that Coinbase’s share price has fallen significantly year to date in tandem with crypto prices and suggested that further weakness in digital assets would likely translate into ongoing pressure on the stock.

Coinbase shares were reported to be 30.53% lower year to date, 48.77% lower over six months and 37.91% lower over the past year. Those declines broadly mirror the reversal in Bitcoin, underscoring the tight link between the exchange’s market value and crypto trading conditions.

Beyond near‑term earnings trends, Eisman focused on valuation disparities between Robinhood and more established U.S. brokerages. He argued that Robinhood trades at a much higher multiple than peers such as Charles Schwab, despite recent operational misses, leaving “no margin for error” if growth disappoints.

By contrast, Eisman said he favors Charles Schwab’s shares in the current environment, indicating a preference for businesses with more diversified revenue streams and lower direct dependence on crypto trading volumes. He framed this as a relative call within the broader retail brokerage sector rather than an outright view on digital assets themselves.

Eisman’s commentary points to a cautious stance toward companies whose performance is closely tied to highly cyclical and speculative markets such as cryptocurrencies. He suggested that until digital‑asset prices find more durable support, stocks like Robinhood and Coinbase may struggle to regain positive momentum, even if they continue to invest in product development or customer acquisition.

At the same time, the divergence he highlighted between high‑multiple platforms and more traditional financial firms reflects an ongoing debate over how to value newer business models exposed to retail trading trends. The recent correction in crypto‑linked equities is sharpening that focus as investors reassess growth expectations against more established benchmarks.