Robinhood Temporarily Restricts Crypto Trading As BTC and DOGE Go Ballistic

News / 29.01.2021

Following the recent surge in the prices of the top cryptocurrency, bitcoin (BTC), and the meme-inspired digital token, Dogecoin (DOGE), the popular trading app Robinhood abruptly restricted the trading of cryptocurrencies on all of its platforms.

According to a Friday report by CNBC, the investing platform temporarily stopped its customers from making deposits into their digital wallets for crypto purchases.

Thus, customers can only buy cryptocurrencies using only the funds that they had already deposited into their accounts before the suspension.

The company said, “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.”

Dogecoin

Robinhood has recently been facing a lot of backlash from millions of its customers after it also suspended the buying of GameStop stock along with other popular stocks among retail investors on Thursday.

Robinhood’s reason for halting the purchase of GME stocks was because the stock’s price had surged in an extremely volatile manner, with DOGE repeating the same movement today.

The price surge, which had been fueled by WallStreetBets Redditors now known as the “GME Army,” had led to many speculations among investors on various social media outlets.

The suspension of GME stocks on Robinhood also fueled the DOGE rally, causing the popular meme-coin to experience a meteoric rise in its price, an increase of over 1000% in 72 hours.

Some analyzed that the abrupt halt in GME trading had forcibly driven investors to direct their attention to other investable assets, in this case, DOGE.

Elon Musk: Bitcoin

Interestingly, DOGE was not the only digital asset to witness a price surge. Just a few hours after DOGE saw its rally, Bitcoin’s price skyrocketed, adding a whopping $5,000 to its price at that time within a couple of minutes.

The price surge had been as a result of a recent update by the billionaire CEO of Tesla, Elon Musk, who changed his Twitter bio to a single word ” Bitcoin.”

Elon Musk’s bio update went viral almost immediately, causing bitcoin’s price to rise from about $32,000 to above 37,000.

SEC Steps In

The Robinhood and WallStreetBets Redditor’s drama becomes more interesting as regulatory bodies are now getting involved in the issue.

The U.S. Securities and Exchange Commission (SEC) said Friday that it is looking into the issue. The regulator expressed its concerns that the recent price volatility and subsequent suspensions can undermine market confidence.

Mandy Williams joined the crypto space in 2016, and since then she has been learning and writing about cryptocurrencies and blockchain technology.