Breaking: Robinhood suspends cryptocurrency trading following Doge’s 1,000% rally
|- Robinhood has just restricted cryptocurrency trading as Dogecoin price exploded by 1,000%.
- The trading app has been under a lot of criticism lately after limiting buy orders for GameStop.
- A famous Reddit group named WallStreetBets boosted GameStop stock to fight shorts.
Robinhood, one of the most famous trading apps has restricted cryptocurrency trading on Friday as the price of Dogecoin exploded by up to 1,000% and even Bitcoin spiked by 30% thanks to a tweet from Elon Musk.
In retrospect, it was inevitable
— Elon Musk (@elonmusk) January 29, 2021
In retrospect, it was inevitable
— Elon Musk (@elonmusk) January 29, 2021
Elon Musk changed his Twitter bio to simply #Bitcoin and followed up with the tweet above. This made Bitcoin price spike by around 30%. Before Musk's tweet, the WallStreetBets Reddit group started to pump Dogecoin which positioned itself in the top 10 of cryptocurrencies by market capitalization.
Following the significant rallies, Robinhood officially announced restrictions on cryptocurrency trading stating:
Due to extraordinary market conditions, we’ve temporarily turned off Instant buying power for crypto. Customers can still use settled funds to buy crypto. We’ll keep monitoring market conditions and communicating with our customers.
If you want to find out more about what happened with GameStop and the short squeeze caused by WallStreetBets, read our article here.
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