Ethereum $2.3k And Robinhood Wants Crypto “Price Volatility Protection”

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Last Updated on 29 July 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Bitcoin maintains around the $40k price level while Ethereum hovers around the $2,300 mark. Both biggest cryptocurrencies show a very healthy weekly gain as crypto news is turning positive again. Also in the CoinMarketCap top 10 XRP was up some 10% this morning and has gained almost 25% over the past week.

Although Bitcoin seemed to be heading for $45,000 immediately after breaking through $40k, some analysts are not yet fully convinced. Royce Tostrams of Dutch financial website IEX said earlier this week that for Bitcoin

The technical picture remains fragile as the uptrend has broken. In addition, we see lower highs, which indicate selling pressure. In the short term, the 200-day line is spinning sideways. Moreover, the price circles around it, not really inspiring.

Nice to see major financial sites like IEX covering crypto more and more, but Royce is not yet a full Bitcoin maximalist apparently.

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Robinhood volatility check

The other day I listened to Pivot, the tech podcast with New York Times podcaster Kara Swisher and NYU Professor Scott Galloway (a great listen by the way) and they discussed Robinhood’s future. According to the duo, the trading app risked a lot of future lawsuits if it couldn’t stop its (mostly younger) traders to switch stocks and cryptocurrencies too many times. Because of the absence of fees, the Robinhood traders seem to like the memestocks and many exciting cryptocurrencies and thus switch whenever a new one of these is mentioned on social media.

In order to limit possible future lawsuits by angry youngsters who’ve lost their inheritance or daddy’s money (there seems to be a trend in the US where young boys on elite schools show off their Robinhood winnings to their friends), Robinhood is now thinking of testing an iPhone app with a new trading feature, mostly for crypto trades, named “price volatility protection.”

The code of the app declares that:

To protect your orders against price volatility, we may sometimes skip your recurring orders or buy less than your chosen amount.

Remember that back in January, as Gamestop rose to heights unseen, Robinhood decided to stop users from buying shares at a certain point in order to bring the price down. It now wants to make that fully legal.

In other words, Robinhood can as from that moment decide whether or not they will execute your trade in full, depending on the status of your account, or any previous losses / winnings it is showing. As Swisher said on her podcast, these Robinhood kids are the product, they just don’t know it.