Crypto Stocks Fall as Bitcoin Hits Six-Week Low
Uncertainty over Fed policy and a major sell-off ripple through digital asset markets, hitting exposed companies like MicroStrategy and Coinbase.
Shares of cryptocurrency-exposed companies, including MicroStrategy (MSTR), Coinbase (COIN), and miners Riot Platforms (RIOT) and Marathon Digital (MARA), tumbled on Monday as Bitcoin slid to a six-week low, extending a period of intense volatility for the digital asset sector.
The price of Bitcoin, the world's largest cryptocurrency, fell below $112,000, erasing gains made after Federal Reserve Chair Jerome Powell's recent remarks at the Jackson Hole symposium. The downturn contributed to a loss of approximately $200 billion in the global crypto market capitalization since late last week, triggering over $715 million in liquidations of leveraged trading positions.
The broad sell-off appears to be driven by a combination of macroeconomic uncertainty and market-specific events. While Powell's comments were initially seen as dovish, the Fed's emphasis on a 'data-dependent' approach has led to investor concerns that interest rates could remain 'higher for longer,' dampening enthusiasm for speculative assets. Compounding the pressure was the movement of 24,000 Bitcoin, worth around $2.7 billion, from a long-dormant digital wallet—an action widely interpreted as a large holder preparing to sell, which spooked the market.
Reflecting the bearish sentiment, shares in major crypto-related firms took a direct hit. MicroStrategy, the software company with the largest corporate Bitcoin treasury, saw its stock fall 4% to $342.89. The drop came even as the company revealed it had purchased an additional 3,081 bitcoins for $357 million last week. Coinbase, the leading U.S. cryptocurrency exchange, saw its shares decline by 2.8%. Bitcoin miners were also caught in the downdraft, with Marathon Digital and Riot Platforms both falling 4%.
This latest slide highlights the persistent link between the price of digital assets and the market performance of companies with significant exposure to the sector. After reaching an all-time high above $124,000 in mid-August, Bitcoin's subsequent retreat has renewed questions about the market's stability amid ongoing regulatory scrutiny and its sensitivity to central bank policy.