Crypto-linked stocks tumbled Thursday as Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and XRP (CRYPTO: XRP) extended their declines, putting additional pressure on some of the most closely watched crypto-exposed stocks.
The crypto selloff saw Bitcoin drop below the key $110,000 level, with Ethereum falling below $3,900 and XRP below $2.75.
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Bitcoin miners such as Riot Platforms, Inc. (NASDAQ: RIOT) and MARA Holdings, Inc. (NASDAQ: MARA) were hit particularly hard, since their revenues are tied closely to Bitcoin’s market price and mining profitability.
Similarly, HIVE Digital Technologies, Inc. (NASDAQ: HIVE) which also operates in crypto mining and high-performance computing, faced a steep decline as digital asset volatility will pressure the company’s margins.
Coinbase Global, Inc. (NASDAQ: COIN) fared no better, with shares dropping nearly 5% as trading volumes appeared to thin out across global exchanges.
As the largest publicly traded U.S. crypto exchange, Coinbase’s revenue is heavily tied to transaction activity, meaning lower volumes directly hit the top line.
Strategy, Inc. (NASDAQ: MSTR) mirrored Bitcoin’s movements almost directly, given its massive treasury holdings of the cryptocurrency.
With Bitcoin dipping, Strategy’s leveraged bet on digital assets weighed on investor sentiment, and exacerbated its downside
Risk-Off
Thursday’s market movements were tied to the surge in U.S. Treasury yields and global risk-off sentiment with investors choosing safer asset classes and eroding the appeal of speculative crypto assets.
The U.S. economy’s stronger-than-expected growth and revised GDP figures also dampened expectations for aggressive Federal Reserve rate cuts and put pressure on risk assets like crypto.
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