Robinhood Removes Day-Trade Flags as Bitcoin Drops 40%, Sees 12% Upside

PDT rules requiring a $25,000 equity minimum expire Thursday, ending the pattern-day-trader designation. Brokerages will transition to intraday margin monitoring and maintain minimum $2,000 equity and maintenance requirements. Firms have up to 18 months to complete the shift.

Robinhood will remove all pattern-day-trading flags and allow customers to trade without day-trading limits. The platform will implement intraday margin requirements that monitor risk based on open positions and equity levels. Repeated margin deficits may still trigger restrictions of up to 90 days.

Based on consensus estimates, Webull’s stock shows the highest potential upside at 93%, followed by SoFi at 18%, while Robinhood’s consensus target implies a 12% gain. Analysts attribute the differences to platform features, user demographics, and execution capabilities. Robinhood may face stiffer competition in the active trader segment.

Robinhood’s latest earnings reveal a notable decline in crypto trading volumes as Bitcoin has dropped 40% from its 2025 high. Trading in prediction markets has grown, suggesting customers are shifting toward alternative products. This trend reflects a broader move away from sentiment-driven assets lacking intrinsic value.