Crypto-related stocks cratered early Monday as a broader sell-off in Bitcoin (BTC-USD), Ethereum (ETH-USD) and other cryptocurrencies accelerated, spilling over into crypto-related stocks.
MicroStrategy (MSTR) led losses, wiping out roughly a quarter of its market cap in early trading – its biggest drop since 2017. The company has accumulated a large bitcoin holding in recent years and held more than 129,000 as of March 31.
Shares of cryptocurrency exchange platform Coinbase (COIN) were also down sharply in early trading on Monday, falling as much as 15%.
The pressure was also spilling over into fintech firms with either crypto holdings or those offering crypto-related services. Shares of Block (SQ) fell as much as 10% Monday, bringing losses on the year to 60%. Online brokerage Robinhood (HOOD) saw shares fall 10%, while shares of payment platform PayPal (PYPL) fell as much as 5%.
The crypto rout deepened amid a broader global sell-off that tipped equities into bear market territory at Monday’s open, with investors bracing for aggressive action from the Federal Reserve amid stubborn inflation.
Bitcoin (BTC-USD), the largest digital cryptocurrency, extended its slide early Monday to trade below $24,000, its lowest price level since 2020. Meanwhile, Ethereum (ETH-USD) — the second-largest digital coin — fell beneath its 2018 peak price of $1,396 and was trading as low as $1,211 Monday morning.
“The selling pressure will likely continue until we see the results of the FOMC meeting,” said Yuya Hasegawa, crypto market analyst at bitbank.
