- Robinhood restricted cryptocurrency buying and selling on account of “extraordinary market circumstances” on Friday, CNBC stated.
- A spokesperson informed CNBC clients can nonetheless use out there 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 consequence of extraordinary market circumstances, we have briefly turned off instantaneous shopping for energy for crypto,” a Robinhood spokesperson informed CNBC. “Clients can nonetheless use settled funds to purchase crypto. We’ll hold monitoring market circumstances and speaking with our clients.”
Earlier within the day, merchants on Robinhood have been unable to make new deposits for cryptocurrency purchases. They may purchase cryptocurrencies solely with the prevailing deposits of their accounts, which may take 5 enterprise days to clear, CNBC stated.
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 latest 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 line with knowledge 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 constantly displays the markets and makes modifications the place needed. 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 known as Robinhood’s determination unacceptable and stated extra data was wanted.