- Robinhood restricted cryptocurrency buying and selling because of “extraordinary market situations” on Friday, CNBC mentioned.
- A spokesperson advised CNBC prospects can nonetheless use accessible deposits of their accounts to purchase crypto.
- The brokerage’s restriction got here as the costs of Bitcoin and Dogecoin spiked sharply on Friday.
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“As a result of extraordinary market situations, we have quickly turned off immediate shopping for energy for crypto,” a Robinhood spokesperson advised CNBC. “Clients can nonetheless use settled funds to purchase crypto. We’ll maintain monitoring market situations and speaking with our prospects.”
Earlier within the day, merchants on Robinhood had been unable to make new deposits for cryptocurrency purchases. They might purchase cryptocurrencies solely with the prevailing deposits of their accounts, which may take 5 enterprise days to clear, CNBC mentioned.
The value of Bitcoin surged 15% on Friday to $38,089.94, after Elon Musk changed his Twitter bio to “#bitcoin.” Musk’s tweets have prompted current frenzies into the shares of video-game retailer GameStop and digital token Dogecoin. The meme-based cryptocurrency that began as a joke soared 336%, to $0.054 on Friday, pushing it into the highest 10 cryptocurrencies by market cap, in accordance with information from Coin Gecko.
Robinhood didn’t instantly reply to Insider’s request for remark.
The platform had additionally restricted trading of highly volatile stocks like GameStop, AMC, BlackBerry, and others on Thursday earlier than the market open, saying it repeatedly displays the markets and makes adjustments the place crucial. It later loosened restrictions and reopened restricted shopping for.
However day merchants and some lawmakers sharply criticized the brokerage for leaving its customers unable to purchase some Reddit-touted shares. On livestream video service Twitch, Rep. Alexandria Ocasio-Cortez referred to as Robinhood’s determination unacceptable and mentioned extra data was wanted.