Robinhood crypto investors buy the dip and rotate beyond Bitcoin and Ethereum

During the latest market downturn, many retail traders on Robinhood crypto are using lower prices to reposition portfolios and seek new opportunities across digital assets.

Robinhood users buy dips and diversify beyond BTC and ETH

Bitcoin is trading around $68,000, slightly higher on the day but lower over the week, after a multi-week decline. However, Robinhood users are not stepping back. Instead, they are increasingly buying the dip and rotating beyond BTC and ETH into a wider set of tokens, according to the company.

Johann Kerbrat, head of crypto at Robinhood, said in a recent interview that many customers see the current pullback as a chance to acquire assets at more attractive levels. Moreover, he noted that this activity is not limited to the largest cryptocurrencies in terms of market capitalization.

“Customers see the current market as a buying opportunity. However, they are expanding their transactions beyond the two or three most popular cryptocurrencies to include a wider range of assets,” Kerbrat explained. That said, Bitcoin and Ethereum still dominate overall flows on the platform.

Strong staking interest and active on-chain use

Kerbrat emphasized that users are increasingly using their tokens rather than simply leaving them idle on the platform. Since Robinhood launched its staking feature in December, demand for staking ETH and SOL has remained strong. Moreover, this trend suggests that customers are engaging with on-chain protocols rather than relying only on passive holding strategies.

The head of crypto said that, in addition to classic buy-and-hold behavior, some clients are exploring altcoin rotation strategies during the downturn. However, he stressed that many still treat the current environment as a way to average into positions instead of chasing short-term rallies.

According to Kerbrat, this balance between long-term positioning and opportunistic trading has helped sustain activity on the platform even as top tokens retreat from their highs. That said, volumes tend to concentrate around familiar names when volatility spikes.

Market sentiment, ETF outflows and price pressure

The changes in Robinhood user behavior come as overall crypto market sentiment remains pinned at extreme fear, based on widely followed indicators. Moreover, U.S. spot Bitcoin ETF products have recorded net outflows for several weeks, adding pressure on prices and reinforcing cautious positioning among some institutional investors.

Kerbrat noted that this backdrop of risk aversion has not fully deterred retail participation. Instead, many traders interpret the weakness in Bitcoin and alternative coins as a chance to build positions at lower levels. However, he acknowledged that persistent ETF outflows signal ongoing uncertainty about the macro environment and regulatory trajectory.

Bitcoin and altcoin prices have continued to grind lower in recent weeks, extending losses across the broader digital asset market. That said, some users view this as a cyclical phase rather than a structural breakdown, and they are positioning for a potential recovery.

Rising interest in decentralized finance and on-chain activity

Despite the negative price action, Kerbrat highlighted growing interest in decentralized finance use cases among Robinhood clients. Moreover, the sustained demand for staking ETH and SOL since its December rollout signals that users are increasingly comfortable interacting with on-chain mechanisms.

This adoption trend suggests that a segment of retail investors is moving beyond basic spot exposure into yield-generating and utility-driven strategies. However, they still rely on the Robinhood interface to simplify access to these more complex products and protocols.

Kerbrat stressed that Robinhood crypto customers are not only seeking price speculation but also experimenting with real-world applications of blockchain networks. That said, he acknowledged that most activity remains concentrated in a relatively small group of established tokens.

In summary, Robinhood data indicates that, even amid extreme fear, many users are buying dips, diversifying beyond Bitcoin and Ethereum, and increasingly engaging with staking and decentralized finance tools.