Crypto stocks sank across the board early Tuesday as bitcoin (BTC-USD) dropped below $90,000 for the first time since November. Crypto heavyweights Strategy (MSTR) and Coinbase (COIN) led the declines.
Strategy, the largest corporate holder of Bitcoin (formerly known as MicroStrategy), dropped more than 5%, extending the prior day’s roughly 6% decline. Crypto exchange platform Coinbase sank as much as 3%, while crypto mining companies including Riot Platforms (RIOT) and Marathon Digital (MARA) fell more than 4%.
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Those declines were driven by Bitcoin’s nearly 7% plummet Tuesday to just under $89,000, its lowest level since Nov. 14. The cryptocurrency is down nearly 15% over the past month, reversing direction after a massive rally following the election of US President Donald Trump. Trump’s crypto-friendly stance had sent Bitcoin above $100,000 last December. In January, it hit a record high of more than $109,000.
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But macroeconomic uncertainty surrounding US interest rates and Trump’s tariff policies have fueled fears of inflation staying higher for longer, pressuring stocks across the board. And industry controversy has pressured crypto stocks in particular: the crypto exchange Bybit fell prey to the largest crypto heist in history last week, with hackers stealing $1.5 billion in digital assets. Trump and First Lady Melania’s recently-launched meme coins have also crashed.
Bitcoin’s declines Tuesday were mirrored by other cryptocurrencies. Ether (ETH-USD) fell 10%, while Solana (SOL-USD) dropped nearly 13%.
Leading crypto stock Strategy was one of the biggest losers of bitcoin’s drop, as the company said Monday that it had purchased an additional $2 billion in bitcoin, meaning it’s spent more than $33 billion buying up the cryptocurrency since 2020 and now owns roughly half a million bitcoins.
Laura Bratton is a reporter for chof360 Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at [email protected].
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