Bitcoin crash hits crypto stocks

Stocks exposed to cryptocurrencies faced a broad selloff in premarket trading on Tuesday as bitcoin plunged below the $40,000 level to reach lows not seen in over seven weeks.

The world’s largest digital currency fell nearly 2 per cent to $38,909 by 10:15 GMT, weighing down related equities. Coinbase Global Inc (COIN.O), the largest US cryptocurrency exchange, dropped 4.6 per cent in pre-market activity. Blockchain firm and bitcoin miner Bitfarms Ltd (BITF.O) fell 3.3 per cent.

Other cryptocurrency miners also faced pressure, with Riot Platforms Inc (RIOT.O), Marathon Digital Holdings Inc (MARA.O), Hut 8 Mining Corp (HUT.TO) and Bit Digital Inc (BTBT.O) dropping between 3.4 per cent and 4 per cent.

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Business intelligence company MicroStrategy Inc (MSTR.O), which has purchased billions in bitcoin, declined 2.4 per cent. Bitcoin exchange-traded funds (ETFs) were also hit, with the ProShares Bitcoin Strategy ETF (BITO.O) falling 2.7 per cent.

The declines come as Bitcoin has fallen 8 per cent since the start of 2024, after more than doubling in 2023.