It appears (from general sentiment) that users are actually finally leaving Robinhood. It’s hard to know exactly how many of them are selling their positions of bitcoin on the platform, but it appears to be a lot.
That means Robinhood (who actually owns the real bitcoin) is now needing to sell it off in order to pay their customers what they are due.
Think about how many MILLIONS (billions?) of dollars of bitcoin Robinhood has purchased in the last few months during the boom? They contributed heavily (opinion) to the run to $40k (along with all of the other retail offerings like paypal and grayscale).
Now that they are selling off all of their BTC the price is obviously taking a temporary hit. Perhaps their bitcoin users are just giving up, because they were punched in the face by the people who sold it to them. If they aren’t buying back in on a legitimate exchange, the price will go down because the amount of people selling is increasing, but not the amount of buyers.
But… if they are getting back in, there would likely be a lag during the transition period. IF (big if) most of them are getting back in and buying real bitcoin (or notes from someone else like paypal), then there could be millions of people waiting on things like verification, bank account linking, and daily limits – not to mention the learning curve on a new platform. This lag is real, and it usually takes at least 3-5 days, sometimes months in rare cases, to get completely spun up into a new exchange.
So, if this is the case, and all of these people are basically stuck in this choke point, we should see a lot of people fighting over the market supply over the coming days/weeks.
This is just my theory, but I think February gonna be lit.