Robinhood restricts crypto trading due to market conditions

Robinhood has confirmed to CNBC that it has restricted trading in cryptocurrencies as the price of bitcoin rose sharply. CNBC's Andrew Ross Sorkin reports. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

Robinhood restricted trading in cryptocurrencies on Friday, as the price of bitcoin and a meme-inspired token rose sharply.

Users began reporting that the trading app had halted instant deposits for crypto purchases earlier in the day, meaning they could only buy the currencies with funds already deposited in their accounts. Such deposits can take up to five business days to clear, Robinhood said.

“Due to extraordinary market conditions, we’ve temporarily turned off Instant buying power for crypto,” a Robinhood spokesperson said in a statement emailed to CNBC.

“Customers can still use settled funds to buy crypto. We’ll keep monitoring market conditions and communicating with our customers.”

The investing platform was the subject of much derision from customers on Thursday after it prevented them from buying GameStop and other stocks popular with retail traders. Such shares were the subject of wildly volatile price swings this week due to a flurry of investors inspired by the Reddit board WallStreetBets.

Robinhood’s move to restrict crypto trading comes after dogecoin, a digital coin based on the popular “doge” meme, spiked as much as 800% Friday. The cryptocurrency was initially started as a joke but has since found some traction.

Meanwhile, bitcoin also rose sharply Friday after Tesla CEO Elon Musk changed his Twitter bio to #bitcoin. “In retrospect, it was inevitable,” the billionaire said in a cryptic tweet.

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC
#CNBCTV