KEY TAKEAWAYS
- Cryptocurrency-linked stocks are slumping in premarket trading Tuesday, after bitcoin dropped below $90,000 for the first time since November as investors steered clear of risk assets, including shares.
- Among those declining are Robinhood, Coinbase Global, and Strategy, formerly known as MicroStrategy.
- The declines in bitcoin and crypto assets come as economic uncertainty weighs on investors, with small-cap shares dropping further into correction territory Monday and major indexes down for the month.
Cryptocurrency-linked stocks are slumping in premarket trading Tuesday, after bitcoin (BTCUSD) dropped below $90,000 for the first time since November as investors steered clear of risk assets, including shares.
Shares in trading app Robinhood (HOOD), cryptocurrency exchange Coinbase Global (COIN) and Marathon Digital parent company MARA Holdings (MARA) are all falling around 4% to 5%. Bitcoin mining and infrastructure company Riot Platforms Inc. (RIOT) is falling about 5%.
Business intelligence and bitcoin treasury company Strategy (MSTR), formerly known as MicroStrategy, is down around 5%. The company said Monday it had again expanded its bitcoin holdings, acquiring nearly $2 billion more of the digital currency.
Bitcoin, which has traded within a relatively narrow range in recent weeks, was around $89,000 early Tuesday, well below its record high level of around $109,000 set last month.
The declines in bitcoin and crypto assets come as economic uncertainty weighs on investors, with small-cap shares dropping further into correction territory Monday and major indexes down for the month. Major U.S. indexes finished mostly lower on Monday, following a steep downturn last week.