Shares of COIN, HOOD, MSTR fell 7.6%, 3.8%, and 6% after Thursday's gains on US crypto legislation progress. Next catalyst: Bitcoin support levels and macro data.
Shares of Coinbase Global (COIN), Robinhood Markets (HOOD), and Strategy (MSTR) fell sharply Friday, reversing gains from the previous session. The initial rally followed progress on US digital asset legislation. That momentum faded after traders refocused on crypto price weakness and broader macroeconomic risks.
COIN dropped 7.6%, HOOD fell roughly 3.8%, and MSTR declined about 6%. Each stock had rallied more than 5% on Thursday after reports of legislative progress. The reversal suggests the market is treating the legislative catalyst as a one-day event rather than a sustained re-rating driver. The specific progress involved a House committee vote on a market structure bill. The lack of a clear path to Senate passage limited the rally's durability. Traders also cited renewed concerns about Bitcoin's price action and the upcoming macro calendar, including Federal Reserve commentary and inflation data.
Coinbase Global is the most direct play on US crypto regulation. Its exchange business depends on a clear legal framework. The stock's 7.6% drop indicates that even a positive legislative signal cannot override near-term selling pressure. Robinhood Markets derives a growing share of revenue from crypto trading. Its retail-heavy user base makes it sensitive to Bitcoin sentiment. A 3.8% decline in HOOD is consistent with a broader de-risking among speculative retail names. Strategy (formerly MicroStrategy) functions as a leveraged Bitcoin proxy. Its share price tracks BTC with amplified moves. The 6% fall in MSTR reflects the same dynamic, with the company's large Bitcoin holdings acting as a direct conduit to crypto spot prices.
The simultaneous pullback across all three indicates a sector-wide de-risking, not a company-specific issue. The read-through is that any legislative optimism is being discounted until actual passage, while near-term price action remains tied to Bitcoin's level and macro data. For traders watching the group, the key question is whether Thursday's rally was a false breakout or the start of a broader trend. The answer depends on Bitcoin holding recent support levels and the macro calendar delivering no surprises.
AlphaScala's proprietary scoring system rates COIN at 32/100 (Weak), MSTR at 34/100 (Weak), and HOOD at 33/100 (Weak). These scores reflect persistent structural headwinds beyond today's price action, including regulatory uncertainty, earnings volatility, and correlation to a speculative asset class. The weak scores suggest that even if the legislative catalyst gains traction, these stocks face fundamental challenges that may cap upside.
The next decision point for these stocks is Bitcoin's ability to hold recent support levels. A break below key technical levels could accelerate selling, while a sustained rally in BTC would likely lift the group again. The legislative calendar also matters: any concrete bill markup or floor vote would reintroduce the catalyst that sparked Thursday's gains. Until then, the sector remains a high-beta play on crypto sentiment and macro risk appetite.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.