Just saw Robinhood’s first-quarter earnings report for its cryptocurrency investment segment, and I have to say the market reaction was definitely intense. HOOD’s share price plunged 6% after hours, and this response makes it clear that investors clearly didn’t expect it to be this bad.

The specific figure is $134 million, down 34% from $221 million in the previous quarter. This drop was beyond Wall Street’s expectations; analysts had originally expected it to be between $180 million and $200 million. It looks like overall industry enthusiasm for cryptocurrency investments is cooling off—trading volumes have fallen sharply, and some competitors are facing similar pressure.

For retail investors who invest in cryptocurrencies, this signal is a bit obvious—the market really is cooling down. The frenzy when Bitcoin broke $100k at the end of last year is already gone, and now everyone is watching and waiting. However, from another angle, lower trading volume could mean tighter spreads, which may not be all bad for small traders.

Robinhood’s problem is that it relies too heavily on trading commissions. When trading volume drops, revenue falls disproportionately. If Bitcoin can hold at higher levels and the regulatory environment becomes clearer, next quarter’s enthusiasm for cryptocurrency investments may rebound. But right now, this number is definitely a warning signal to the market.